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IMF cautions Uganda on government borrowing
Kasekende wonders how with a growth rate of 3%, and with most of its growth coming from public sector spending, Uganda can be able to tamper its borrowing appetite.

With general low growth for sub-Saharan African countries including Uganda but with growing public debt, the International Monetary Fund recommends a slow down in borrowing, possible reduction in expenditure and temper growth ambitions otherwise called fiscal consolidation.

However, discussing the IMF’s latest regional economic outlook report, deputy central bank governor Louis Kasekende disagrees.

Kasekende wonders how with a growth rate of 3%, and with most of its growth coming from public sector spending, Uganda can be able to tamper its borrowing appetite.

''You have aggregate demand which is low, you have import compression, you have situations where most of the growth is coming from the public sector, are we going to rely on monetary policy to stimulate growth?'' Kasekende asks.