Uganda’s ambitious development targets may be jeopardised by insufficient public spending on education and healthcare, according to a new report from the World Bank.
The 24th edition of the Uganda Economic Update, released on February 24, highlights a stark disconnect between the country’s development aspirations and its budgetary priorities.
Despite setting lofty goals, Uganda’s spending on critical sectors like education and healthcare remains well below international recommendations, placing its future growth in jeopardy.
In 2021, public spending on education was just 2.7% of GDP, far below the recommended 4% and significantly lower than regional peers, who allocate an average of 4.2%.
The upcoming fiscal year budget reveals a concerning shortfall of nearly UGX1.2 trillion for the Ministry of Education, threatening the implementation of key initiatives, including the free education program and the expansion of universal primary education.
Health spending tells a similar story. While Uganda allocated 1.4% of GDP to healthcare in 2001, this dropped to a mere 0.6% by 2019 before rising to 1% in the 2021/22 fiscal year.
This is far behind neighboring countries such as Burundi, Kenya, Malawi, and Rwanda, which all allocate at least 2% of their GDP to health.
The report reveals that 82% of Uganda’s health expenditure is funded by external partners and private sources, unsustainable sources that make the sector vulnerable to fluctuating support.
Nadal Elattar, EDC officer at UNICEF Uganda, expressed concern over the reliance on external funding, highlighting that such a model is not sustainable in the long term.
“This leaves the health sector vulnerable to changes in partner support, putting critical services at risk,” she said.
The report urges the government to focus on expanding primary healthcare and nutrition services to address these critical gaps.
The World Bank report also calls for additional public funding, noting that Uganda has the potential to boost growth by investing more in human capital.
The report references a scenario from the 2023 Public Expenditure Review, which suggests that increasing education and health spending by 2 percentage points, offset by cuts in other sectors, could raise Uganda’s annual GDP growth from 5.2% to 6.6% by 2029.
Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG), echoed these concerns, warning that the government’s failure to meet the targets outlined in Uganda’s fourth National Development Plan (NDP IV) could lead to its collapse.
Mukunda pointed out the significant gap between the proposed budget and the resources required to meet Uganda’s development objectives.
“The lack of alignment between the budget and actual spending creates inefficiencies and risks derailing the country’s development goals,” he explained.
Meanwhile, in a minority report, Ibrahim Ssemujju Nganda, the Kira Municipality MP, criticised the government’s spending priorities, arguing that funds are being diverted to non-essential items such as donations, workshops, and state functions, instead of critical areas like education and healthcare.
As Uganda continues to grapple with these budgetary challenges, experts and civil society organisations alike stress the need for urgent reforms to ensure that the country’s development targets are met.
Without increased investment in education and healthcare, Uganda’s growth trajectory may be at risk.
END
English 