UGANDA'S ECONOMIC PERFORMANCE IS STRONG - IMF

Growth attributed to increase in public investment

The International Monetary Fund (IMF) has described Uganda’s economy as strong and steadily growing.

This has been credited to the increase in public investment and a recovery of private consumption, supported by stronger credit growth.

Mr. Keith Muhakanizi, the Permanent Secretary in the Ministry of Finance, says that the IMF audit is a true reflection of the economy.

“This is an indication that the reforms we have been taking over the recent years are now bearing fruit. I can confidently say that the payroll is now clean and we are dealing with corruption,” he said.

One of the most prominent reforms at the finance ministry is the single account under which all ministries, government departments and agencies withdraw their money.

Before this reform was put into force, government bodies had several accounts with Bank of Uganda, from which they withdrew money at will, making the arrangement prone to corruption.

The IMF says the supplementary budget before Parliament reallocates rather than increases spending, using savings realized from improvements in the payment and payroll systems to address emerging needs.

“Many people speculated that we would increase borrowing. We have not done so. We have not over spent this year and nor are we doing so next year,” Mr. Muhakanizi said.