Abstract:
The study examined the effect of household’s income and consumption expenditure in Uganda using data from three (3) recent waves of the Uganda National Panel Survey (UNPS). A panel-quantitative study was undertaken using secondary data from Uganda Bureau of Statistics (UBOS). The results indicate that; i) having household income (on farm and off farm income) has a significant positive effect on consumption expenditure. The implication of these findings is that government should focus on the formation and implementation of policies that inspire households to diversify their income sources in order to improve on their consumption expenditure. Government should also prioritize attainment of higher of higher education levels through increased access to education and retention especially at higher levels. Additionally, government should purpose to remove all constraints to income diversification, through enhancing access to cheap credit and putting in place programs that enhance entrepreneurial skills of the population, among others. All the above put together could increase households’ income and also lead improved consumption expenditure especially for rural areas.
