It’s not right to raise taxes haphazardly

Mr Ocici at a forum recently. Photos by STEPHEN OTAGE

By Derrick Musaazi

In the Daily Monitor edition of Wednesday, June 13, there was an article that advocated for the wanton increases in taxes as seen in the recently presented 2013/14 Budget.

I must say the article was quite intriguing and invariably I have been compelled to share a few of my misgivings about the inability of most writers to accurately assess what is required in order to address Uganda’s current economic management predicament.

Granted, the withdrawal of almost $300 million (donor aid) from our budget has had a significant impact on the country’s overall resource allocation.

However, what is critical for all of us to note is that there is something seriously dysfunctional when it comes to running the affairs of this government, from a resource utilisation stand point. This, in my view, is the cardinal challenge, all else regardless.

Since what happened at the OPM is already in the public domain, I would wish not to delve any further into how that fiasco is a demonstration of the cheap manner in which the resources of this country, whether tax revenue or otherwise is wasted with reckless abandon.

If anybody cared to find out how the taxation revenues are utilised, you would not help but to cry for mother Uganda! Procurement officers are under constant pressures especially around this time when the fiscal year is coming to an end, to do all that is possible to “utilise fully” all that was budgeted, before the fiscal year comes to an end.

Meaningless workshops, purchase of non essential vehicles is what is preoccupying the minds of those who superintend over the affairs of these departments, organisations, in order to ensure that there are no budget cuts in the subsequent year, simply on account of less than required “utilised: funding. It is sad but true.


What is even disturbing is that, we have a minister of Finance who everybody thought was well versed with the running of big private companies and hence would do better than most before.

It is instructive to note that the running of a public department like the ministry of Finance whose primary objective is to ensure the effective allocation of scarce resources, is not different from how private companies whose main objective is the same, in addition to increasing or sustaining shareholder wealth.

To that end therefore I find it terribly disappointing that Maria Kiwanuka has chosen not to make the need to curb government wastage of scarce resource, the bedrock of the coming year’s budget management.

Ugandans in their multitudes felt that with a non politician and a known incorruptible lady, well read and well travelled, for once there was light at the end of the rather very dark passage in the running of the affairs of the critical ministry of Finance.


But, She has failed us so miserably! She is totally clueless about the goings in the departments where she is allocating hard earned money to ensure the future prosperity of Uganda.

Every Ugandan is aware of the need to curb non essential foreign travel as well as the purchase of non essential fuel guzzlers. Recall that this comes with the attendant costs of servicing them.


Ugandans should be aware of meaningless workshops that are held in places like Nnajjera hotels simply to reflect that the workshop took place in Wakiso District and not Kampala District, with the overall objective being that of paying out “living out” allowance, travel allowance, that come with “up-country” retreats.

We all know that the world over private organisations like major airlines, huge manufacturing outfits, major financial institutions are all challenged. There is constrained global market demand and this is what is curtailing the much needed global economic recovery.


Posting less than expected bottom line forecasts has become the order of the day. What the organisations have done is to rethink their expenditure patterns. Jobs have had to be consolidated, with managers taking on more roles than hitherto.

All wastage is being investigated like a problem that it indeed is. Foreign travel that is non essential is no more, job losses has become a fixture.

Unfortunately the reverse in countries like Uganda seems to be true! If it were not for the donors to freeze part of their resource contribution we would not even focus so much on the apparent concern to allocate scarce resources better.

It is the current malaise that we are observing, which makes most of us wish Ms Kiwanuka had not been the disappointment she has ended up being.

What was expected was a budget whose main thrust was the need to abolish this and that kind of wasteful expenditure. All non essential public vehicles need to be auctioned off.
No more foreign travels, etc and not a hugely tax laden budget, completely lacking in terms of National focus.