Uganda needs to manage population growth if the country is to attain middle income status, Dr. Fred Muhumuza of FSD Uganda has advised.
“Growth of the economy was 5.3%, good progress compared to where we were two years ago, but still lower than the 7% target. The economy has been growing but we have not yet reached middle income status, and the reason is we are busy producing one another,” he said.
While delivering the key note address at a budget breakfast meeting organised by Institute of Certified Public Accountants of Uganda (ICPAU) on Friday, Muhumuza said with the population rise must not be taken lightly.
“The economy must grow at the same pace at which we are producing one another, or even better, if we are to get into middle income status.”
Muhumuza also said institutional issues like fighting corruption, delays in corruption, procurement, release of funds should be addressed as they are key drivers of the economy.
While presenting the 2015/2016 national budget, Kasaija said the recent re-assessment of the Ugandan economy has shown that it is 17% larger than previously estimated, and is now valued at sh75.183 trillion.
Muhumuza also reflected on the on the continued focus on infrastructure developments. Of the sh23.9 trillion 2015/2016 national budget, sh3.2trillion was allocated to works and transport.
He said much as it is important to develop infrastructure, government should address issues like interest rates for the economy to be competitive.
“We have been told that the roads and energy will give us competitiveness. I sometimes call this Senior Five economics. At this level is when we were told some kind of linear analysis, that when prices go up, supply goes down but as you go higher in economics, you realise it is more than just prices. Other things must be in place,” he said.