World Bank approves IDA credit to finance 7th PRSC7

07 May '08

3 min read

The credit will supplement the Government's own resources and funding from other budget support development partners. Spread over two Ugandan fiscal years 2007/08 and 2008/09, the $200 million marks a reduction in the annual volume of the Bank's PRSC support compared with previous years.

This reduction was a response to a mixed performance in implementing the PRSC7 undertakings, including the recurring overruns in public administration and defense expenditures. In areas experiencing delays in achieving the undertakings, the Ugandan authorities have reiterated their commitment to implement the outstanding actions early in the financial year 2008/09.

“The PRSC series will continue to be a key component of the Bank's support for Uganda as spelled out in the Uganda Joint Assistance Strategy (UJAS). In implementing the previous PRSCs, Government maintained sound macroeconomic management in spite of the ongoing power crisis, exchange rate fluctuations caused by sizable short-term capital inflows, and large spending pressures on the budget.

We hope, through this new credit, to see a stronger interest in orienting the budget process for clearer results that are tied to the resources being allocated,” said Kundhavi Kadiresan, World Bank Uganda Country Manager. The Government of Uganda is currently preparing a 5-year National Development Plan, which will succeed the third PEAP, and continue addressing systematically the capacity constraints that stand in the way of faster and better results in many areas. The next multi-year PRSC series will be designed and presented to the Board once the core elements of the new PEAP are defined by Government.

World Bank

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