President Museveni has reiterated his stand against subsidies at a time when Ugandans are decrying the high cost of commodities and rising cost of living.
Delivering his State of the Nation address at Kololo ceremonial grounds on Wednesday, President Museveni said subsidies are not sustainable and instead create distortions in the economy.
He maintains that Uganda does not believe in subsidies for consumption especially on fuel.
“The prices of domestic goods and services have reduced from what they were in the previous year. Petrol has reduced from Shs 6,563 a litre to Shs 5,138 now.,, Museveni said.
“I don’t believe in subsidies, for example I cannot subsidise fuel for people to drive to night clubs, it should be at their cost. At least for things like fertilizers, those can be subsidized,” he added.
He, however, says government is considering subsidies for fertilisers to help farmers increase production.
According to Museveni, much as the economy has faced a number of economic shocks, households and businesses have been responding positively to investments by the government.
He expresses optimism that the economy will grow beyond the 6% projections made by the Ministry of Finance.
Museveni has meanwhile revealed that at least 60% of households increased their income last year compared to 43% in the previous year.
