Measures to reduce the budgetary deficits (Curb the huge public debt) in Uganda
- Use of the Privatization This can help reduce on government expenditure on non performing Parastatals hence reducing the budgetary deficits.
- Cost sharing especially in providing public services to the people. The cost of providing social services can be shared between the government and the people as a way of reducing government expenditure.
- Widening the tax base. This can be done by creating a variety of taxes on different economic activities as a way of increasing tax revenue g land tax.
- Trade liberalization. This not only encourages competition but also to promotes efficiency and proper resource use in the economy. This leads to improvement in the quality and quantity of exports hence more export
- Reducing borrowing for dead weight debts. Borrowing should be restricted to investments in productive ventures which can be used to generate more income and savings necessary for economic growth and
- Maintaining political stability and security in the country. Democratic governance should be promoted and practiced. In addition peace talks and amnesty laws should be respected as a way of promoting peace in the This can also help to reduce defense spending.
- Export promotion policies g. improving on the quantity and quality of exports through value addition. This can help to increase on foreign exchange earnings of the country.
- Combining two or three ministries into one as a way of minimizing public expenditure. In addition size of the parliament can also be reduced and the creation of new districts can be stopped to reduce government
- Fighting corruption and embezzlement of government funds by imposing stringent penalties on corrupt
- Controlling inflation through the use of appropriate restrictive monetary and fiscal policies, e.g. increasing the bank rate to reduce money supply in the economy by the central
- Checking on the high population growth rate. This can be done by encouraging people to use family planning methods as a way of controlling population growth.
- Rehabilitation and construction of new social and economic infrastructures especially in rural areas. This can help to facilitate production and transportation of produce to the market areas from which the government can tax to raise
- Appealing for debt relief
- Controlling population growth
CATEGORIES Economics
TAGS Dr. Bbosa Science
