Outstanding economist Dr Fred Muhumuza has issued a problem to authorities entities, notably the Ministry of Tourism, to discover complimentary budgeting methods amidst proposed price range cuts.
With the decline in discretionary expenditure impacting varied sectors, Dr. Muhumuza advocates for leveraging assets from different ministries to mitigate the results of diminished funding in tourism.
Regardless of contributing as much as 3.64% of Uganda’s GDP in 2023 and using over 1.6 million individuals, the tourism sector stays underfunded in nationwide price range allocations.
Within the monetary yr 2023/2024, the Ministry of Tourism obtained simply 429 billion shillings, a determine that’s set to lower additional to 202.37 billion shillings within the upcoming fiscal yr.
Expressing concern over the proposed price range cuts, Dr Muhumuza acknowledges the challenges confronted by the tourism sector however proposes an answer.
“Tourism can faucet into complementary sectors like transport, safety, and ICT to fill the hole left by price range cuts,” Dr Muhumuza said.
The proposed price range cuts, attributed to a shortfall in discretionary expenditure, have affected all sectors, leaving them wanting obligatory funds. Dr. Muhumuza emphasizes the significance of prioritizing important points for funding amidst restricted assets.
“Whereas the proposed price range has elevated to over 58 trillion shillings, discretionary spending has diminished to simply 23 trillion shillings, leaving the federal government with restricted funds for growth,” Dr Muhumuza defined.
Stakeholders within the tourism sector have expressed considerations over the influence of diminished funding on trade progress and growth.
Nevertheless, Dr Muhumuza’s proposal presents a possible answer to mitigate the results of price range cuts and maintain the momentum of tourism initiatives.
By leveraging out there assets and fostering partnerships, Uganda’s tourism sector can overcome the challenges posed by price range constraints and proceed to thrive.