Ugandans have been urged to tighten their belts, cut unnecessary travel and switch to locally produced foods as rising fuel prices, inflation and a weakening shilling put increasing pressure on household budgets. Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi says citizens must adjust their spending habits to cope with the changing economic environment, warning that households and businesses cannot continue operating as usual when economic conditions deteriorate.
Ggoobi described the recent increase in the Central Bank Rate (CBR) as a major warning to the economy, signalling the need for individuals, businesses and government agencies to exercise greater financial discipline. He said the central bank’s decision was not directed at commercial banks alone but was intended to influence the behaviour of all economic players. “The first major signal of the central bank is to tell you to tighten right now. And they are not telling banks alone. They are telling every economic agent,” Ggoobi said.
With fuel prices rising, the Treasury Secretary advised motorists to avoid unnecessary journeys and reconsider spending on activities that consume fuel without adding significant value. He said people who own vehicles should minimise unnecessary driving and avoid routinely offering lifts when doing so would increase their fuel expenses. Ggoobi stressed that although motorists could continue using their cars, they needed to be more deliberate about their movements and prioritise essential trips.
The government is also tightening its own spending as part of broader austerity measures aimed at managing economic pressures. Ggoobi revealed that ministries, departments and agencies (MDAs) have received reduced funding for consumables and other operational expenses in the second-quarter budget releases for the 2026/27 financial year. Government officials have been encouraged to reduce travel, limit workshops and embrace virtual meetings wherever possible to lower administrative costs.
Ggoobi said the government had reduced planned second-quarter expenditure by nearly Shs3 trillion as part of efforts to complement the Bank of Uganda’s monetary policy measures. He explained that the reduction in funding for consumptive expenditure was intended to encourage more disciplined spending across government institutions. “You must cut the trips. If you were travelling for workshops, now you should attend online. This is what these austerity measures are about,” he said.
The Treasury Secretary also warned households against maintaining spending patterns that no longer match prevailing economic realities. He urged Ugandans to reassess their budgets, distinguish between essential and non-essential expenses and accept that difficult economic conditions may require temporary sacrifices. “Change your life when things are getting tough. Do not expect that things will remain the same when the macroeconomics has changed. You will have to lose some level of happiness,” Ggoobi said.
On food consumption, Ggoobi encouraged households to prioritise locally produced staples instead of imported alternatives whose prices may be affected by exchange-rate movements and import costs. He questioned why Ugandans should continue spending money on imported foods such as spaghetti when locally available alternatives could offer more affordable options. According to him, choosing domestic produce could help families manage their food budgets while supporting local farmers and reducing dependence on imports.
He cited potatoes from Kabale, cassava and matoke among the alternatives Ugandans should consider as the country navigates the economic challenges. Although local food prices may also rise because of higher fuel and transportation costs, Ggoobi argued that locally produced staples would generally remain more affordable than imported products. His message comes amid renewed pressure on the shilling and efforts by the government and the Bank of Uganda to contain inflation, with households being encouraged to adopt more cautious spending habits as the country adjusts to changing economic conditions.
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