IMF: Government should minimize its high Fiscal Deficit

By Namugerwa Martha

The International Monetary Fund (IMF) has advised the government to minimize its high fiscal deficit and tighten the current expenditure in form of public investment in order to realize remarkable results from development projects which it is putting its money.

The IMF says public investment supports the delivery of key public services through construction of schools, hospitals and other social infrastructures which helps the communities and the county at large.

Mira Clara the IMF representative in Uganda said that Uganda needs to get its public investment right, minimize the high fiscal deficit it is facing especially in the budget of the financial year 2017\18 and also tighten its current expenditure.

“Uganda needs to get its public investment right, minimize the high fiscal deficit, the budget for financial year 2017/18 and tighten current expenditure in this regards,” Clara said.

She added that public investment connects citizens and firms to economic activities through the provision of economic infrastructure hubs such as airport and seaports and networks which supports telecommunications transport and electricity production and transmissions.

“The budget for next financial year is tight on the current expenditure side, with allocations for social spending broadly unchanged relative to 2016/17 in Shilling-terms. Therefore expenditure controls will be necessary to make sure we do not end up with arrears or supplementary budgets.” Clara added.