Home Business Uganda treasury pegs growth at 6pc on higher agriculture output

Uganda treasury pegs growth at 6pc on higher agriculture output

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Uganda’s finance ministry says the country is on course to achieve 6pc economic growth in the current fiscal year supported by better performance in agriculture and financial services sectors.

According to Treasury Permanent Secretary Ramathan Ggoobi, economic activity remained on a recovery path, partly supported by continued implementation of growth-enhancing government programs and an increase in private sector activity.

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“The economy registered Gross Domestic Product of 5.3pc and 5.5pc in the first and second quarter of FY 2023/24, respectively. The key growth drivers were higher production in the industry sector, growth in agriculture, forestry and fishing sector, growth in services as well as increase in household consumption, investments, and exports,” said Ggoobi.

The ministry projects the agriculture sector to register a 6pc growth in the current financial year from 4.8pc the previous financial year mainly driven by increased production of food crops, cash crops, livestock and fish.

“This is being driven by continued government intervention in provision of quality seedlings, extension services, water for production and affordable credit through the PDM, and better weather conditions,” he added.

Exports volumes also grew in seven months to January 2024 supported by food crops such as maize 79pc, fruits and vegetables134pc, other pulses 11pc, coffee 10pc, cotton 56pc, tobacco 4pc and cocoa beans 79pc.

The ministry is further threatening to take disciplinary action against accounting officers of state departments and agencies over unauthorized hiring above the approved wage bill in the current fiscal year.

The ministry says the unlawful hiring has contributed to shortfalls against the budged wage bill of Ush 7.513 trillion.

“I have the list of Votes that have undertaken unauthorized recruitment and I will take appropriate action against the Accounting Officers and their technical staff who recruited against the freeze put in place,” Ggoobi warned.

New records added shall now require prior approval by the Ministry of Public Service upon confirmation of adequacy of the wage bill.

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