President Yoweri Kaguta Museveni has argued that certain government agencies, which operate without generating revenue for the national treasury, have become a financial burden, costing taxpayers around 2.2 trillion Ugandan Shillings annually.
This insight, based on a 2017 study led by General Salim Saleh and other experts, reveals that non-revenue-generating agencies are contributing heavily to unnecessary public expenditure.
Museveni stated that, as part of the government’s plan to streamline operations, agencies such as the Uganda National Roads Authority (UNRA), Uganda Coffee Development Authority (UCDA), the National Agricultural Advisory Services (NAADS), and the Dairy Development Authority are among those under review.
The study suggested that the budget allocated to these agencies, which should ideally return value to the treasury, is instead largely consumed by salaries and administrative costs. The President expressed frustration, emphasizing that these funds could be better utilized elsewhere to address national priorities.
One major example Museveni highlighted was UNRA, whose primary role is to oversee the awarding of contracts to road construction contractors. However, despite significant expenditure, the agency’s impact remains questionable, he noted. In his view, restructuring or eliminating such agencies would enable a leaner government that channels resources more effectively.
Specifically addressing the UCDA, Museveni mentioned that its responsibilities, particularly quality control in the coffee industry, would shift to the Ministry of Agriculture and Livestock, much like quality monitoring for other produce, such as bananas, which falls under the Uganda National Bureau of Standards (UNBS).
Similarly, former UCDA experts and personnel would transition to the Ministry of Agriculture, allowing them to continue supporting farmers without the added overhead costs associated with running an autonomous agency.
Museveni also criticized the lavish spending on board members across various agencies, a practice he views as draining public resources without contributing to national revenue.
He clarified that agencies generating income for the treasury, such as the National Enterprise Corporation of the Army, National Housing Corporation, Uganda Development Corporation, and Uganda National Electricity Company Limited, would remain operational. However, he stressed that entities that fail to produce returns and only add to fiscal pressures would face closure or restructuring.
In closing, Museveni underscored that his administration is committed to tackling corruption and inefficiency in public agencies, marking this move as a step toward a more fiscally responsible government.
