IMF advises govt on public investment

Kampala. The International Monetary Fund (IMF) has advised government to get its policy of public investment right in order to realise remarkable results from development projects it is spending money on.
The IMF says public investment supports the delivery of key public services through construction of schools, hospitals and other social infrastructures.
It adds that public investment also connects citizens and firms to economic activities through the provision of economic infrastructure hubs such as airport and seaports and networks which supports telecommunications transport and electricity production and transmissions.

In an interview with Daily Monitor recently, IMF resident representative Mira Clara said: “Uganda needs to get its public investment right. This means continue enhancing the management of projects throughout the whole project life cycle, not just implementation. To minimise the high fiscal deficit ,the budget for financial year 2017/18 is tighten current expenditure in this regards.”

She added: “The second is that the budget for next financial year is tight on the current expenditure side, with allocations for social spending broadly unchanged relative to 2016/17 in Shilling-terms. Therefore expenditure controls will be necessary to make sure we do not end up with arrears or supplementary budgets.”
Public investment shapes choices about where people live and work, influences the nature and allocation of private investment, and affects quality of life.
On the other hand, poor investment choices waste resources, erode public trust and limit opportunities.

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