Household Income and Expenditure in Uganda (1993~2o 15)

ABSTRACT The main purpose of this study was to ascertain the relationship between Household Income and Expendituire in Uganda. The specific objectives of this sturdy were to establish the Household Income Trend, establish the Household Expenditure Pattern. The study made use of time series data from statistical abstracts - Uganda Bureau of Statistcs (1993-2015). In line with Expenditure, figure 2 revealed that Household Expenditure on Food, Drinks, Rent, Fuel and energy was the highest among other Household Expenditure Patterns with about 5 1.8196% of the Household per capita Expenditure on Food, Drinks, Rent, Fuel and energy. This was closely followed by Household Expenditure on clothing and footwear by 6.37826 %. Apart from these two Expenditure Patterns that showed a major Expenditure for the Households, other Expenditure Patterns were averagely within 5 %. In line with Household Income, figure 3 revealed that over a number of years there have been variations in income among Households in Uganda. On aggregate income was highest among other households with about 11.523% in 1995. This was closely followed by income in 2006 by 11 .49%. Apart from these two income levels that showed high income for the Households, other Household Income levels were averagely low. In line with the relationship between Household Income and Expenditure, the results provided evidence that Household Income induces Household Expenditure positively and signifcantly by 65.8% in Uganda. The results of the study also revealed that there was causality flowing from Income to Expenditure and no causaulity flowing from Expenditure to 1ncoi~ne. Basing on the findings of the study its recommended that government should encourage Households to save part of their income earned inorder to cater for the unforeseen cirmustances which may lower down their standards of living.