Editorial: Reducing Gov’t expenditure will help Uganda sail through
The Bank funds quite a number of projects in the country to the tune of $5.2 billion.
Some of the projects likely to be affected include the improvement of urban roads and the renovation of traditional schools in the country, among others. These account for nearly $1.8 billion.
The Bank says the Government of Uganda would have to provide assurances that the controversial law would not discriminate against people based on their gender or sexual orientation.
The Museveni-led Government has heavily relied on the World Bank and the International Monetary Fund for funding of different development projects ever since introducing economic reforms in the 1990s. This means that the Government has had a good relationship with the Bank for decades, but this could come to an end if the Museveni leadership plays a deaf ear to the demands tabled.
Uganda can still stick to its legislation and sail through this difficult time if certain measures are put in place.
The country has one of the largest Cabinets (82 ministers) on the continent. The country’s Parliament is also one of the largest, with about 557 members. This means that a lot is spent on these government officials, as most of them are paid huge salaries, and ministers even have extra expenses on them, such as their security, among other benefits.
Reducing the sincerity of both the Parliament and Cabinet would be the first step the government of Uganda needs to take in order to be able to cater for some of the projects that are likely to stall as a result of the World Bank's halt to financing.
The government of Uganda could also consider seeking alternative financing from other wealthier countries, such as China, but should avoid overrelying on them.