President Yoweri Museveni has urged the Uganda Revenue Authority (URA) to raise the country’s tax-to-GDP ratio from the current 14 per cent to at least 20 per cent to reduce dependence on external borrowing and donors.
Speaking during Uganda’s 63rd Independence Day celebrations at Kololo Ceremonial Grounds in Kampala on Thursday, Museveni said stronger revenue performance would enable the government to fund more of its development programmes internally.
“If URA collected at least 20%, we would raise about Shs 47 trillion annually,” he said. “That would ease our dependence on borrowing and accelerate development.” Museveni expressed optimism that Uganda’s economic fortunes will improve significantly once oil production begins next year, describing it as a blessing “shielded by divine providence” until the right time.
“The British were here for 68 years from 1920 to 1956, they tried to find petroleum in Uganda but failed. They even concluded that it had evaporated due to volcanic activity,” Museveni said.
“When the NRM came, we discovered petroleum around Lake Albert. God favoured us with special emphasis.”
The President outlined key priorities for the expected oil revenues, including defence, infrastructure, electricity expansion, education, health, safe water, irrigation, and railways. He also cited science, innovation, and industrial initiatives such as Kiira Motors and Dei Biopharma as central to Uganda’s economic transformation.
Part of the oil proceeds, Museveni said, will go toward improving the welfare of scientists, judicial officers, and security personnel. With disciplined budgeting, he added, Uganda could maintain an annual economic growth rate of around 7 per cent.
Despite challenges such as a growing population and rising public debt, the President said Uganda had made notable progress under the NRM government, particularly in health, education, and social welfare.
“Uganda’s population has grown from 14 million in 1986 to 46 million today,” he said. “Infant mortality has dropped from 119 to 28 deaths per 1,000 live births, life expectancy has risen from 43 to 68 years, and literacy has improved from 43% to 80%.”
Museveni also commended Ugandan scientists for innovations in automotive technology, pharmaceuticals, and vaccine development, saying their work reflects the fruits of strategic investment and disciplined budgeting.
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