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Uganda budget gap seen narrowing as some projects wrap up

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Uganda’s budget deficit may narrow to six per cent of gross domestic product in 2019-20 as the country concludes investments in two big hydropower projects, the finance ministry said.

Thursday 03, January 2019

(Bloomberg)--The financing gap in the 12 months through June 2020 may drop from 6.6 per cent of GDP this fiscal year as the government completes the 600-megawatt Karuma and 183-megawatt Isimba plants, according to the National Budget Framework Paper on the ministry’s website.

The fiscal shortfall in East Africa’s third-biggest economy is expected to gradually narrow to 2.6 per cent of GDP in 2023-24 on the phased reduction in big public investment projects, according to the pre-budget document.

Uganda sees resources in the coming fiscal year rising to UGX 34.3 trillion ($9.27 billion) from UGX 32.7 trillion in 2018-19, according to the document. Africa’s biggest coffee exporter will allocate UGX 2.9 trillion for interest payments in the next fiscal year, of which UGX 402.4 billion will be for external loans, the ministry said.

TAGS : National Budget Framework Paper

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