Uganda showed strong macroeconomic stability, low inflation, and poverty reduction under the Poverty Reduction and Growth Facility (PRGF) Arrangement. Executive Directors commended the monetary and exchange rate policies, and stressed the need to strengthen fiscal sustainability and maintain a healthy financial sector. They emphasized the need to improve the infrastructure, expand financial intermediation, enhance governance to improve the investment climate, and encourage private sector-led investment and growth. They agreed that Uganda has successfully completed the first review under the PRGF Arrangement, and approved waiver.
An improvement in the quality of public expenditures is needed in many countries, given binding macroeconomic and fiscal constraints, and poverty reduction and distributional objectives. This process involves a reassessment of methodology used for this purpose by countries and international agencies, and the data needed for improved decision making. This paper reviews methods that might be used by international agencies, such as the Fund and the Bank, jointly with a survey of data currently available, required improvements in the data currently available, and required improvements in the information base. The scope for improvements in governments' expenditure policy making is also considered.