Uganda Ditches Public Holiday Funding to Tackle Debt

In a significant move to curb escalating government expenditure and address Uganda’s growing fiscal deficit, the Ministry of Finance has announced the discontinuation of state funding for national public holiday celebrations from the upcoming financial year 2026/27.

Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, confirmed that prominent national events, including Independence Day, Labour Day, and International Women’s Day, will no longer be marked with expensive public functions. Instead, state resources will be strategically reallocated to a limited number of religious observances.

President Museveni is expected to deliver national addresses on these holidays via radio and television from State House. “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.

This austerity measure arrives at a crucial juncture for Uganda’s economy, which has grappled with a persistent budget deficit, largely financed through domestic and international borrowing. The government’s budget for FY2026/27 has been projected to increase significantly, with a strong emphasis on critical infrastructure projects and resource development, including the East African Crude Oil Pipeline and mineral quantification.

The decision to suspend holiday funding is also in line with the ongoing rationalization of government agencies and public expenditure (RAPEX), aimed at reducing administrative waste. While the treasury hopes these cuts will free up capital for productive sectors and foster economic growth, some observers question the extent to which these savings will impact the country’s substantial deficit.

This story was first reported by the Daily Monitor.