Dr. Oledo: Rationalisation Will Reduce on Government Expenditure, though it will lead to loss of Jobs.

If implemented, the rationalization process will leave at least 33 agencies moved into their mother ministries, 35 agencies consolidated and merged into 19 entities while 80 of them will remain as semi-autonomous agencies.

Former President of the Uganda Medical Association,  Dr. Oledo Samuel, has criticized the government’s recent decision to rationalize government agencies, citing its poor implementation strategies for these policies. He added that Uganda has always come up with very good policies, but the biggest problem is implementation.

He made these remarks on February 5, 2024, in Kampala, during a discussion with our reporter concerning the recent decision of the government to rationalize its agencies, under the topic “Will the rationalization of government agencies deliver greater efficiency in public administration?”

He noted that, with rationalization, cost-cutting is secondary; the primary need is efficiency and effectiveness, which he called horizontal decentralization from ministries to agencies. He noted that rationalization is going to clog decision-making and make it hierarchical.

“That is why some people have made fun of our policies—that policies are made in Uganda, perfected in Kenya, and implemented in Rwanda,” Dr. Oledo 

He further noted that there is a need to acknowledge that it’s not the first time rationalization has ever been exercised; he added that, 30 years ago, under the influence of foreign funders (the World Bank and the International Monetary Fund-IMF), rationalization was in existence but implementation failed.

“If the main purpose of rationalization is cost-cutting, what about the many districts that have been created?” - Dr. Oledo.

However, he elaborated that the rationalization being talked about has not been explained well because, in corporate businesses, one doesn’t have to rationalize since rationalization is cutting costs to improve services.

“With the rationalization of government agencies, people are asking, Are you talking about saving Ugx 1 trillion? How much is lost in corruption? About Ugx 10 trillion,” - Oledo

During the NRM caucus meeting at State House Entebbe last week, a unanimous resolution was passed in favor of supporting the rationalization of government agencies and public expenditure through the enactment of legislation in parliament. As part of rationalization, 33 agencies will be moved into their respective mother ministries, then 35 will be consolidated and merged into 19 entities, and 80 will remain semi-autonomous.