Data provided by McGregor BFA
All data is delayed
Loading...
See More

Uganda's budget to fall short

Dec 10 2012 18:59 Reuters

Related Articles

Uganda cuts key lending rate

MTN threatens to cut off rival

SA donation for Ugandan school

Ugandan oil reserves sold

 
Kampala - Uganda's budget for the 2012/13 (July-June) fiscal year will fall short by about $260m or 6.2% due to aid cuts by donors over graft, a senior official said on Monday.

At least five western countries, including Uganda's biggest bilateral donor Britain, suspended their aid to the country after officials in the prime minister's office were accused of embezzling $13 million meant for reconstruction.

Keith Muhakanizi, the deputy secretary to Treasury - the second highest ranking civil servant in the ministry of finance - said the funding gap would amount to "about $260m."

He said the impact of the aid freeze would be felt from January, adding the government would reduce expenditure "where necessary across the board," without offering further details.

The central bank governor, Emmanuel Tumusiime-Mutebile, said last week the suspension of aid would cut the country's economic growth by 0.7%.

Donor funding accounts for up to a quarter of the east African nation's annual budget.

Analysts said the aid cuts, at a time when policymakers are struggling to return economic growth to its long-term path after inflation soared last year, would hit businesses.

"Government is the biggest spender in the economy. With cuts, everything suffers. There are contracts all around that depend on government expenditure," said Angelo Izama, a Ugandan analyst at the US based Open Society Foundation.

Critics of President Yoweri Museveni, in power since 1986, accuse him of lacking the political will to punish corrupt public officials, particularly those related to him or those who help finance his re-election.
uganda  |  budget
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

'Zuma's legacy will be judged by Nkandla'

The legacy of President Jacob Zuma is contingent on how he deals with the issue of upgrades to his Nkandla homestead, says Cape Town Archbishop Thabo Makgoba.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...