Ramathan Ggoobi, the Permanent Secretary at the Ministry of Finance, Planning and Economic Development and Secretary to Treasury says there has been continued expansion of Uganda’s economy, affirmed by the recently released Quarterly GDP outturns for the second quarter of the calendar year 2024 (April– June 2024) which showed that the economy expanded by 6.6%.
Ggoobi was on Tuesday PSST addressing the press on Q2 FY 2024/25 Expenditure Releases.
“The high-frequency indicators of economic activity show improvements in the level of economic activity and positive sentiments by the private sector about doing business in the economy,” noted PSST Ggoobi.
He added: “With the Government’s continued investment in the ATMS to grow the economy ten-fold and other strategic interventions, the economy is poised to grow between 6% – 6.5% this financial year.”
According to him, in the subsequent years, economic growth is projected to be higher, driven by interventions implemented under the ten-fold Growth Strategy.
On economic growth, he said the Composite Index of Economic Activity grew to 166.63 in August 2024 from 166.03 in July 2024. Similarly, both the Purchasing Managers Index and the Business Tendency Index were recorded at 54.2 and 57.8, respectively in September 2024.
This is above the threshold of 50 implying that the business health and sentiments in the private sector are positive, noted Ggoobi.
He explained that the Q2 Expenditure Limits for FY 2024/25 were derived from the quarterly Work Plans and Procurement Plans of Ministries, Departments, and Agencies (MDAs) and taking into consideration the projected resource inflows. For this Quarter (October – December 2024), UGX 15.99 trillion has been released representing 22.2% of the approved budget.
Inflation subdued
He said inflation remains subdued, with annual headline inflation declining to 3.0% for the year ended September 2024, while the Uganda shilling has remained relatively stable.
The Ugandan shilling has maintained relative stability against the US dollar with a gradual appreciation since March 2024.
He attributed this stability to, partly, increased export revenues, particularly from coffee, despite strong corporate demand for financing imports and other obligations.
“Inflation remains subdued, with annual headline inflation declining to 3.0% for the year ended September 2024, driven by good harvests of food crops which have resulted in lower prices for food items. Additionally, the central bank’s monetary policy stance has played a part in ensuring price stability,” noted the PSST.
Recruitment of accounting officers
He emphasized that no recruitment should be done without clearance from the Ministry of Public Service after ascertaining the availability of adequate wage from the Ministry of Finance.
“Accounting Officers are required to ensure that every promotion and re-deployment of staff made to a different cost center should be backed up by adequate wage provision,” he pointed out.
In his concluding remarks, Ggoobi urged all Accounting Officers to ensure that they pay salaries, pensions, and gratuities by the 28th day of every month and as per the approved salary scales as well as prioritize payment of service providers on time and clearance of domestic arrears to avoid further accumulation of arrears and penalties.
