Business
IMF says Uganda’s economic performance is satisfactoryPublish Date: Jun 30, 2014
IMF says Uganda’s economic performance is satisfactory
  • mail
  • img
IMF Managing Director Christine Lagarde (R) being greeted by local singers as she attends the opening session of the Africa Rising Conference, on Thursday at the Chissano Conference Center in Maputo. PHOTO/AFP/AMF
newvision

By Samuel Sanya & David Mugabe

The International Monetary Fund (IMF) has hailed the Government’s commitment to infrastructure development, the effective control of inflation and the start of the treasury single account to manage the Government payroll.

The IMF executive board has just completed the second review of Uganda’s economic performance under a Policy Support Instrument that was approved on June 28, 2013 and rated Uganda’s economic performance as ‘satisfactory’.

“Uganda’s recent economic performance has been broadly satisfactory with robust growth, low inflation, and strong international reserves,” David Lipton, the IMF deputy managing director and acting chairman, said following a board discussion.

“However, the Government net domestic financing has expanded beyond the programme ceiling and private sector credit growth has remained constrained,” he added.

The IMF notes that the Government must resist spending pressures, limit domestic borrowing to programmed levels and curb the use of supplementary budgets. This will allow implementation of important infrastructure projects and social programmes, IMF argued.

“Significant progress has been achieved on institutional reform. The authorities have implemented sound public financial
management reforms and adopted a new methodology to manage unpaid bills,” IMF said.

They noted that completing the introduction of the treasury single account, making efficient use of the upgraded payments
and payroll systems, and adopting the Public Financial Management Bill promptly are paramount steps to further improve
governance, strengthen the budget process, and ensure sound oil revenue management.

Reacting to the IMF rating, Kelvin Kizito Kiyingi, the acting director of the communications department at the Bank of
Uganda, said the positive rating will further foster confidence in the management of our economy.

Jim Mugunga, the finance ministry publicist said: “We are happy about the report and it is consistent with the deliberate reforms that we are implementing together with the development partners.”

On the slowdown in private sector credit growth and revenue shortfalls, he noted that the slowdown is associated a lot more with the impact of the regional social-political issues rather than commercial ones.

Also related to this story

Africa needs massive investment in infrastructure - IMF

Museveni, EXIM Bank chief meet over infrastructure development

Integration will transform, make region prosperous

Museveni travels to Kenya for Northern Corridor infrastructure summit

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Shell says Q2 net profits triple to $5.307bn
Anglo-Dutch oil giant Royal Dutch Shell said Thursday that net profits more than tripled in the second quarter, boosted by asset sales and higher oil prices....
NTB reporting system to be commissioned today
Trade minister, Amelia Kyambadde will today commission the Non-Tariff Barriers (NTBs) Reporting System, a mobile phone and email-based system for reporting barriers to trade....
Samsung posts 20% fall in net profit
Samsung Electronics reports a near 20 percent decline in second quarter net profit, blaming increased competition from cheap Chinese devices in the key smartphone sector....
West Nile grid extension on schedule
THE West Nile power grid extension from Nyagak Hydro plant to the rest of the districts is moving steadily with over 46% of the work on the sh44 billion project...
Gov’t allocates sh10b for tarmacking roads
GOVERNMENT has earmarked sh10b for the tarmacking of roads intended to enhance commerce, reduce dust and facilitate mobility in 26 town councils...
Local govt asked to participate in alternative energy planning
Ministry of energy officials and experts from GIZ have urged local government leaders to participate in developing affordable and efficient sources of energy at district level to light up districts instead of the long waiting for the central government to do for them what they can do themselves....
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter