The Permanent Secretary and Secretary to the Treasury, (PSST) Ramathan Goobi, has defended the ongoing trade order enforcement across the country, saying it is a strategy to transform the economy. He argues that organized business practices are essential for Uganda’s economic transformation and attracting investment.
Speaking at the 2026 Absa Post-Budget Forum, Goobi said Uganda’s next phase of economic growth will depend not only on increased public spending but also on implementing reforms aimed at improving accountability, efficiency, trade order and tax compliance. He said the government is determined to move beyond economic planning and focus on disciplined execution of policies that support growth, industrialization and job creation.
“Enforcement of trade order and ensuring that we get some orderly way of doing business in Uganda is critical,” Goobi said. “This tendency of everybody saying, ‘I am an orphan, I am a widow, so I should sell in the middle of the road,’ is not good for the economy and it is affecting our ability to attract serious investors.”
According to Goobi, government is prepared to take difficult decisions that may inconvenience some people in the short term but are necessary for long-term economic development. “We are going to inconvenience people going forward. The political leadership led by President Museveni has committed that this is the only way forward. We must get organized if we are to grow the economy and attract investment,” he said.
The government prioritized investments in agro-industrialization, tourism, mineral beneficiation, and science, technology and innovation, in the financial year 2026/2027.
Goobi explained that while the national budget is officially reported at more than Shs84 trillion, a significant portion consists of debt refinancing and accounting items that do not represent new spending. He spoke. He the actual discretionary expenditure available for government programs stands at approximately 57 trillion shillings. He said about 95 percent of this spending will be directed toward productive sectors and critical enablers such as roads, electricity, irrigation infrastructure and industrial parks that support economic activity.
However, he noted that achieving the intended outcomes will require stronger discipline in public expenditure management. “We are committed to budget discipline and accountability. We must ensure that public resources are spent on activities that create value rather than on unnecessary expenditures,” he said.
He revealed that government has begun scrutinizing expenditures on allowances, consultancies, workshops and public events to ensure resources are redirected toward development priorities. He cited examples where government entities hire external consultants despite employing qualified professionals internally, practices he said contribute to wasteful spending.
“To strengthen accountability, accounting officers across government institutions will be required to sign a Budget Discipline and Accountability Charter committing them to responsible spending, proper procurement practices and prudent management of public resources. He announced major reforms in public procurement, describing the current system as slow, expensive and vulnerable to manipulation, arguing that procurement processes have become overcrowded with individuals who are not procurement professionals, resulting in delays and weak accountability.
“We want procurement professionals to take responsibility for procurement decisions. Too many people are involved in the process, making it difficult to determine who should be held accountable when things go wrong,” he said. The reforms are expected to reduce procurement lead times, improve efficiency and strengthen oversight of government contracts.
Beyond expenditure controls, Goobi said trade order reforms form part of a broader domestic revenue mobilization strategy under the government’s Domestic Revenue Mobilization Strategy II (DRMS II).
He noted that while many people attribute Uganda’s revenue challenges to widespread informality, recent evidence suggests that significant tax leakages exist within the formal sector itself. “We now have evidence that much of the informality in Uganda is actually in the formal sector. It is not informality; it is tax evasion,” he said.
Government plans to adopt a whole-of-government approach to broaden the tax base, ensuring that more businesses contribute fairly to national revenue while reducing the burden on compliant taxpayers. The reforms, he said, will involve collaboration with civil society organizations, the private sector, development partners and international institutions such as the IMF.
Goobi maintained that Uganda’s macroeconomic fundamentals remain strong, pointing to low inflation, exchange rate stability and increasing economic activity. “The challenge now is to translate strong macroeconomic performance into tangible improvements in household incomes and business growth,” he noted.
According to the PSST, the growing contribution of Ugandans living abroad, who remitted approximately US$2.8 billion during the 12 months ending March 2026, is a vote of confidence in the Ugandan economy.
“Ugandans abroad are bringing their money home because they believe in the opportunities that exist here,” he emphasized. Absa Uganda Chief Financial Officer Michael Segwaya welcomed government’s commitment to fiscal discipline and economic transformation.
He said the country’s growth ambitions, continued infrastructure investments and preparations for commercial oil production present significant opportunities for businesses and investors. However, Segwaya stressed that implementation will be the true measure of success.
“The success of the Budget will not only be measured by the resources allocated, but by how effectively those resources are translated into improved infrastructure, timely payment of suppliers, a more competitive business environment and tangible opportunities for businesses and households alike,” he said-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
