Government Scraps Funding for Most Public Holiday Celebrations to Boost Wealth Creation

Government will stop funding most public holiday celebrations from 2026/27 and redirect the savings to wealth creation and priority development programmes.

The government has announced a major shift in public spending policy, ending funding for most national public holiday celebrations starting in the 2026/27 financial year in a bid to redirect resources toward wealth creation and key development programmes.

The decision was announced by Permanent Secretary and Secretary to the Treasury Dr Ramathan Ggoobi, who said the move is part of broader efforts to improve expenditure efficiency and ensure public funds deliver greater economic value.

Under the new arrangement, government-funded commemorations for most statutory public holidays will be discontinued. Instead, many of these occasions will be marked through televised and radio addresses by President Yoweri Museveni from State House, reducing the costs associated with organising large national events.

“For the 2026/27 financial year, government will no longer finance most public holiday celebrations. The resources will instead be directed towards wealth creation and other priority interventions,” Ggoobi said.

For years, Uganda has spent significant amounts of money organising national events such as International Women’s Day, Labour Day, Heroes Day, NRM Liberation Day and Independence Day. These celebrations often require substantial spending on security, transport, accommodation, tents, public address systems, entertainment, publicity and other logistical needs.

While the Ministry of Finance has not disclosed the exact amount expected to be saved, individual national celebrations have in recent years attracted budgets ranging from hundreds of millions to several billions of shillings, depending on their scale and location.

Uganda observes 14 public holidays annually, including both religious and statutory commemorations.

Treasury officials indicated that some major religious celebrations may continue receiving government support, while most statutory observances will transition to lower-cost formats.

The policy comes as government seeks to maximise the impact of public spending amid increasing demand for investment in agriculture, industrialisation, healthcare, infrastructure, education and job creation.

It also aligns with the government’s wealth creation agenda, including the Parish Development Model (PDM), Emyooga, agricultural commercialisation programmes and value-addition initiatives aimed at increasing household incomes and expanding participation in the money economy.

The 2026/27 national budget is built around the goal of fully monetising Uganda’s economy through commercial agriculture, industrialisation, expanded services, digital transformation and improved market access.

The Parish Development Model alone has received trillions of shillings in funding since its launch and remains one of the government’s flagship programmes for poverty reduction and rural economic transformation.

Economists and public finance experts have long argued that reducing spending on ceremonial activities can create more fiscal space for investments that generate measurable economic returns and improve service delivery. The move also comes as Uganda balances major development projects, rising debt-servicing obligations and preparations for commercial oil production, which government expects to boost economic growth.

Uganda’s economy is projected to grow at around seven percent, supported by expansion in agriculture, industry and services, making it one of the fastest-growing economies in Sub-Saharan Africa.

Government officials say the decision reflects a commitment to fiscal discipline and value-for-money spending, ensuring that limited public resources are directed toward programmes that have the greatest impact on jobs, productivity and household welfare.

The policy is likely to spark debate. Supporters see it as a practical cost-saving measure at a time of competing development priorities, while critics may argue that national celebrations play an important role in promoting patriotism, unity and remembrance of key historical events.

For the Treasury, however, the priority remains ensuring that every available public shilling contributes more directly to economic transformation and wealth creation.