The overall budget deficit rose slightly to 3.5 percent of GDP in 2012 and is expected to rise Overall Deficit /GDP of not more than -3.9%p -3.3% -3.5% further to 3.9 percent in the 5% FY2012/13 financial year 2012/13 and to 5 (CY2011) (CY2012) Projection) percent in 2013/14 on account of the government’s planned investments in infrastructure. Bank of Uganda does not extend credit to the Government Minimize central bank financing of 0 - - - budget deficit towards zero percent External reserves improved to 4.4 months of future import of =/>4 goods and services cover in External reserves equal to or more 4.2 2012, mainly due to the 3.7 4.4 than 4 months of imports of goods and deliberate effort of the central (June 2012) services bank to build foreign exchange reserves. Secondary Criteria The economy is poised to grow by 5.1 percent in FY2012/13 driven mainly by growth in >7 exports and public investment. Achieve sustainable growth of real 5.1%P Overall, growth is subdued, 6.6% 3.4% GDP of not less than 7% FY2012/13 reflecting the spill-overs of the (FY2010/11) (FY2011/12) global economic challenges, Projection) fiscal consolidation and the lagged impact of tight monetary policy in the first half of FY2011/12.
Overall Deficit /GDP of not more than 5% -3.3% (CY2011) -3.5% (CY2012) -3.9%p FY2012/13 Projection) The overall budget deficit rose slightly to 3.5 percent of GDP in 2012 and is expected to rise further to 3.9 percent in the financial year 2012/13 and to 5 percent in 2013/14 on account of the government’s planned investments in infrastructure. Minimize central bank financing of budget deficit towards zero percent - - - 0 Bank of Uganda does not extend credit to the Government External reserves equal to or more than 4 months of imports of goods and services 3.7 4.4 4.2 (June 2012) =/>4 External reserves improved to 4.4 months of future import of goods and services cover in 2012, mainly due to the deliberate effort of the central bank to build foreign exchange reserves. Secondary Criteria Achieve sustainable growth of real GDP of not less than 7% 6.6% (FY2010/11) 3.4% (FY2011/12) 5.1%P FY2012/13 Projection) >7 The economy is poised to grow by 5.1 percent in FY2012/13 driven mainly by growth in exports and public investment. Overall, growth is subdued, reflecting the spill-overs of the global economic challenges, fiscal consolidation and the lagged impact of tight monetary policy in the first half of FY2011/12.
Report-on-the-2012-Progress-Towards-Macroconvergence-in-COMESA-November-2013.docx