Prominent economist Dr Fred Muhumuza has issued a challenge to government entities, particularly the Ministry of Tourism, to explore complimentary budgeting strategies amidst proposed budget cuts.
With the decline in discretionary expenditure impacting various sectors, Dr. Muhumuza advocates for leveraging resources from other ministries to mitigate the effects of reduced funding in tourism.
Despite contributing up to 3.64% of Uganda’s GDP in 2023 and employing over 1.6 million people, the tourism sector remains underfunded in national budget allocations.
In the financial year 2023/2024, the Ministry of Tourism received just 429 billion shillings, a figure that is set to decrease further to 202.37 billion shillings in the upcoming fiscal year.
Expressing concern over the proposed budget cuts, Dr Muhumuza acknowledges the challenges faced by the tourism sector but proposes a solution.
“Tourism can tap into complementary sectors like transport, security, and ICT to fill the gap left by budget cuts,” Dr Muhumuza stated.
The proposed budget cuts, attributed to a shortfall in discretionary expenditure, have affected all sectors, leaving them short of necessary funds. Dr. Muhumuza emphasizes the importance of prioritizing critical issues for funding amidst limited resources.
“While the proposed budget has increased to over 58 trillion shillings, discretionary spending has reduced to just 23 trillion shillings, leaving the government with limited funds for development,” Dr Muhumuza explained.
Stakeholders in the tourism sector have expressed concerns over the impact of reduced funding on industry growth and development.
However, Dr Muhumuza’s proposal offers a potential solution to mitigate the effects of budget cuts and sustain the momentum of tourism initiatives.
By leveraging available resources and fostering partnerships, Uganda’s tourism sector can overcome the challenges posed by budget constraints and continue to thrive.
#africatourism #africatravel
