Business
IMF says Uganda’s economic performance is satisfactory
Publish Date: Jun 30, 2014
IMF says Uganda’s economic performance is satisfactory
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
  • mail
  • img
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
Pakasa Forum: Long queue for tickets at Vision Group offices
People queu outside the Vision Group head office in Industrial Area to receive their passes to the Fourth Pakasa Forum due tomorrow August 23 at Kampala Parents School in Naguru....
Pick your Pakasa access pass at New Vision offices
Access passes to the fourth edition of Vision Group’s Pakasa Forum on Saturday are now available at the New Vision reception on Plot 19/21, First Street, Industrial Area....
Fake inputs: Are the laws too weak?
The name Container Village in Kampala downtown rings an instant bell to every farmer who buys farm inputs. The place is no longer full of the containers from which the name was derived....
KCCA discourages taxi drivers from striking
Kampala Capital City Authority (KCCA) will continue engaging city drivers despite their intended Monday strike....
Pakasa Forum to broadcast live across East Africa
At least five television stations across the East African region will telecast Vision Group’s Pakasa Forum live this Saturday....
Ethiopian Airlines’ Entebbe-Juba route promising
Two weeks after Ethiopian Airlines launched a daily direct route from Entebbe to Juba, frequent flyers between Uganda and South Sudan seem to be embracing the development rather fast....
Will strict traffic laws reduce road accidents?
Yes
No
Can't Say
follow us
subscribe to our news letter