The Public Finance Management Act (PFMA) Cap 171, requires the Finance Minister to publish a post-election economic and fiscal update not later than four months after the polling day for a general election.
According the published report, the macroeconomic environment remained stable during the general elections and the post-election period.
Most macroeconomic parameters remain as estimated before the polling date as captured in the Pre-Election and Fiscal Update.
The domestic economy remains resilient despite a challenging global economic environment characterized by subdued global growth, geopolitical tensions, and volatile commodity markets.
Economic growth in FY 2025/26 is projected at 6.6 percent as indicated by the high frequency indicators of economic activity that show continued strengthening of domestic activity in the third quarter of this financial year.
Additionally, inflation remained low and stable, while the external position with the rest of the world improved, supported by increased export receipts and sustained foreign exchange inflows from tourism, foreign direct investments (FDI) and remittances.
These developments are indicative of continued progress in implementation of the Fourth National Development Plan (NDP IV), which focuses on increasing household incomes and improving the quality of life of Ugandans. In addition, they are consistent with the Government’s Ten-Fold Growth Strategy aimed at expanding the size of the economy to USD 500 billion by 2040, through strategic investments in productive sectors, infrastructure development, and human capital enhancement.
According to PSST Ramathan Ggoobi who is also the Acting Finance Minister, the successful conclusion of the general elections gives the country an opportunity to continue strengthening the efficiency and effectiveness of fiscal policy to increase productivity and speed up the process of socioeconomic transformation in line with government’s aspirations.
Dr. Ggoobi said that major emphasis will be put on investments in Agro-industrialization, Tourism, Mineral-based development (including oil & gas), and Science, Technology & Innovation (ATMS) as well as continued rollout of the Parish Development Model (PDM)
“As we continue to set the economy on a Tenfold Growth Trajectory, we are mindful of fiscal and debt sustainability. Therefore, Government will focus on improving domestic revenue mobilization and efficiency of public expenditure to achieve self-sustaining and inclusive growth,” said the PSST.
