Economic think-tank wants social protection reinforced amid COVID-19

Kampala, Uganda | THE INDEPENDENT | The government has been asked to reinforce existing social protection interventions and pay pending pensions in order to cushion the elderly Ugandans in the wake of the coronavirus.

Patrick Katabaazi, the Executive Director of an Independent Think Tank; the Centre for Budget and Tax Policy, proposes that the government enhances the Social Assistance Grants for Empowerment (SAGE) program to support more vulnerable persons with direct cash transfers during this time.

Under SAGE, the government gives a monthly allocation of 25,000 Shillings to persons aged above 60 years. The program currently supports more than 200,000 older persons.

Katabaazi notes that in order to deal with the economic effects of the coronavirus, the government should take care of its people. The proposals follow a ban on public transport, public gatherings and calls for people to stay at home as a measure to control the spread of the coronavirus pandemic.

He proposes that the government targets all persons aged above 60, a move which could support the lives of more than 1.2 million people in rural areas and 300,000 people in urban areas. Katabaazi argues that through this, the government will be indirectly supporting millions of people under the care of the elderly.

He proposes that it is time for the government to pay older persons who have been waiting for their pension in vain, provide a top up for some civil servants who earn less than 500,000 Shillings and clear all outstanding domestic arrears.

“According to the Auditor General’s reports 2018/2019, domestic arrears are now at 3.3 trillion Shillings, it is important to note that a huge bulk of these monies are owed to local businesses and therefore nonpayment negatively impacts the economy,” Katabaazi says.

Katabaazi also recommends an income stimulus for the informal sector workers through the existing structures like Market Vendors Association, Kampala City Traders Association (KACITA), Bodaboda and taxi drivers.

He also proposes support towards small and medium enterprises who will be badly hit in the shock of coronavirus lockdown to enable them access credit through Uganda Development Bank. He says priority should be given to companies that have diligently paid taxes.

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