Uganda - Public Expenditure Review 2022-23: Module I - Identifying Broad Macro-Fiscal Options for an Effective and Sustainable Fiscal Adjustment

This module of the Public Expenditure Review (PER) sought to identify options for an effective and sustainable fiscal adjustment by considering key macroeconomic variables, fiscal policy priorities, spending trends, and Uganda’s overall development needs. It has, therefore, detailed Uganda’s macro-fiscal challenges and government’s current fiscal policy stance in relation to both the short-term shocks and longer-term structural issues such as demographics and structural transformation; outlined spending problems in key sectors (e.g., infrastructure and human development) and their impact on efficiency and effectiveness of fiscal policies; and provided an assessment of the broad options for expenditure rationalization and restructuring. The report summarizes the outcome of the analysis together with options for macro-fiscal adjustment and a action plan that includes broad expenditure rationalization measures and the quantification of potential fiscal savings. This module is the first of a four-module PER and is focused on selected aspects of fiscal policy management and outcomes with a view of supporting an effective and sustainable fiscal adjustment to a more inclusive growth agenda. this report is presented in four parts. Chapter 1 gives introduction and country context. Chapter 2 discusses the macro-fiscal developments and changes to overall fiscal management; chapter 3 assesses the expenditure trends and their implication on growth and social outcomes; and chapter 4 relays the results and implications of simulations of the options for fiscal adjustment, before concluding with the final remarks and recommendations.