Empower Ugandans to Direct Tax Funds for Maximum Impact

Uganda’s Shs84.3 trillion fiscal year 2026/27 budget signals substantial growth projections, yet faces familiar challenges in efficient fund allocation and public trust. The Uganda Revenue Authority (URA) is tasked with collecting a significant portion of this budget through taxes, but the effectiveness of these collections often falters due to a narrow tax base, exemptions, and evasion.

While the government aims to stimulate the economy through sectors like agro-industrialisation and tourism, everyday citizens often see little tangible benefit from their tax contributions. Issues like deteriorating infrastructure, understocked health centres, and a reliance on indirect taxes disproportionately affect the populace.

To bridge this gap, a novel proposal suggests ring-fencing a small percentage (5-10%) of URA collections—estimated at Shs2-4 trillion—for a citizen-led priority fund. This fund could empower Ugandans to directly vote, through secure digital platforms or local assemblies, on where these funds should be allocated. Potential areas include critical healthcare services, rural road maintenance, clean water access, or agricultural support.

Implementing such a system could foster greater tax compliance by demonstrating immediate, visible results. It would also enhance accountability, reduce corruption by increasing oversight, and strengthen the social contract between the government and its citizens. While sceptics raise concerns about fragmentation or populism, established global precedents and pilot programs suggest that with proper safeguards, such as independent audits and caps, the system can be effective.

The proposal calls for a collaboration between Parliament and the Executive to pilot this citizen-driven allocation model, asserting that empowering taxpayers to direct their money would transform revenue into tangible, felt improvements across the nation. This shift from top-down decision-making to citizen-informed governance is presented as the key to ensuring that every tax shilling truly counts.

Source: https://www.monitor.co.ug/uganda/oped/commentary/put-tax-shillings-where-they-matter-most-5501670