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Uganda's Debt Strategy to Halve Fiscal Deficit by 2031
15 Jul
Summary
- Uganda's fiscal deficit projected to halve by 2031.
- New debt strategy favors cheaper external borrowing.
- Central bank report indicates a 3% GDP deficit target.
Uganda's fiscal deficit is anticipated to decrease by half, reaching 3% of the Gross Domestic Product (GDP) by the financial year 2030/31. This projection represents a substantial reduction from the current 6% deficit.
The nation's central bank has outlined a new debt management strategy to achieve this fiscal improvement. A key component of this strategy involves a greater reliance on external credit, specifically focusing on borrowing options that are more cost-effective.
This shift towards cheaper external financing is expected to bolster Uganda's financial stability and facilitate the reduction of its fiscal imbalance over the coming decade. The central bank's report, released on Wednesday, details these projections and the strategic approach.
