In a drastic move to curb runaway government expenditure and manage Uganda’s widening fiscal deficit, the Ministry of Finance has announced that the government will no longer fund national public holiday celebrations starting next financial year (FY 2026/27).
The Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, revealed that prominent national events-including Independence Day, Labour Day, and International Women’s Day-will no longer receive state funding for lavish public functions. Instead, state resources will only be allocated to a select few religious functions, according to a statement from Ministry of Finance.
According to Ggoobi, President Museveni will henceforth address the nation via radio and television from State House during these holidays.
“The money saved from these functions will be redirected to finance core government priorities, specifically the ATMS (Agriculture, Tourism, Mineral-based industrialization, and Science/Technology) and key economic enablers,” Dr. Ggoobi stated.
The austerity measure comes at a critical time for Uganda’s economy. The country has been battling a persistent budget deficit, heavily reliant on domestic and external borrowing to fund its national budget.
Uganda raised its projected public spending for the 2026/2027 financial year by 12.7% to Shs78.2 trillion ($21.78 billion), up from an earlier estimate of Shs69.4 trillion, the finance ministry announced in February.
The government has previously stated that spending in the next fiscal year will prioritise the completion of the East African Crude Oil Pipeline (EACOP), facilitating the commencement of crude oil production.
Other priorities include mineral quantification for iron ore, gold, and copper deposits, the development of a refinery, and the ongoing construction of a standard gauge railway, the ministry said.
‘The budget for FY2026/27 will prioritise the ATMS and enablers. Particular attention will be on cleaning up and enforcing execution discipline,’ said Uganda’s Secretary to the Treasury Ramathan Ggoobi.
Uganda’s public debt has spiraled in recent years, prompting warnings from civil society and international lenders like the IMF about debt sustainability. Servicing this debt consumes a massive chunk of local revenue.
The suspension of holiday funding aligns with the ongoing rationalization of government agencies and public expenditure (RAPEX), aimed at eliminating wasteful administration costs.
By cutting back on tent rentals, entertainment, and logistics for massive public gatherings, the treasury hopes to inject much-needed capital into productive sectors capable of stimulating economic growth. However, critics argue that while the fiscal discipline is necessary, it remains to be seen if these minor cuts can significantly offset the country’s massive deficit.