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Outstanding economist Dr Fred Muhumuza has issued a problem to authorities entities, significantly the Ministry of Tourism, to discover complimentary budgeting methods amidst proposed finances cuts.
With the decline in discretionary expenditure impacting varied sectors, Dr. Muhumuza advocates for leveraging sources from different ministries to mitigate the results of lowered 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 finances allocations.
Within the monetary 12 months 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 12 months.
Expressing concern over the proposed finances 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 finances cuts,” Dr Muhumuza said.
The proposed finances cuts, attributed to a shortfall in discretionary expenditure, have affected all sectors, leaving them in need of essential funds. Dr. Muhumuza emphasizes the significance of prioritizing crucial points for funding amidst restricted sources.
“Whereas the proposed finances has elevated to over 58 trillion shillings, discretionary spending has lowered 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 lowered funding on trade progress and growth.
Nevertheless, Dr Muhumuza’s proposal gives a possible resolution to mitigate the results of finances cuts and maintain the momentum of tourism initiatives.
By leveraging obtainable sources and fostering partnerships, Uganda’s tourism sector can overcome the challenges posed by finances constraints and proceed to thrive.
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