Summary:
- A comprehensive study in Uganda’s education sector aims to propose strategies for expanding the government’s tax base to generate crucial revenue, with preliminary findings emphasizing the need for improved funding mechanisms and addressing challenges in infrastructure and teacher welfare.
Kampala, Uganda | THE BLACK EXAMINER | The education sector’s stakeholders have initiated an ambitious research endeavor aimed at providing substantiated insights to address uncertainties in the country’s education financing. During the validation exercise in Kampala, Emmanuel Wafula, the National Project Officer at Action Aid International Uganda (AAIU), highlighted that the study’s focus is to propose ways for the Ugandan government to broaden its tax base, consequently generating essential revenue for funding the education sector.
Wafula emphasized that the ongoing study, conducted by economic consultants, is poised to formulate recommendations and bolster the advocacy efforts of Civil Society in enhancing financing for the education sector. By identifying loopholes in areas such as tax holidays and assessing the impact of the government’s tax regime on the general populace, the study aims to provide a foundation for informed proposals and advocacy strategies.
Preliminary findings indicate that Uganda’s education financing involves diverse sources, encompassing contributions from the government, development partners through loans and grants, and internally generated funds from schools and institutions. The study also reveals that, despite the varied sources, public expenditure on education as a percentage of the Gross Domestic Product has averaged at 2.04% over the past decade, emphasizing the need for improved infrastructure and teacher welfare.
The research underscores that changes in financing are influenced by both demand and supply factors, with a focus on addressing existing challenges to enhance the quality of education services. Eddie Kayinda, a private economic consultant, highlights the difficulty Uganda faces in prioritizing the education sector due to a growing population and an escalating debt trajectory. He points out that the government’s challenge in financing internal debt is exacerbated by non-concessional lenders and commercial banks with business-oriented interests.
Kayinda’s observations align with the study’s findings, indicating that Uganda Revenue Authority falls short in collecting sufficient revenue to meet the budget required for debt financing. He asserts that borrowed funds from the IMF and World Bank are being diverted to purposes other than their intended use, potentially contributing to the misuse of the budget for political rather than service-oriented motives. Kayinda urges international financial institutions to shift their focus from the politicization of aid to ensuring accountability in aid utilization, emphasizing the need for internal mechanisms to guarantee borrowed funds are allocated appropriately.
