The World Bank has approved $300 million (about Shs1.1trillion) budget to aid Uganda in fighting the coronavirus Covid-19. This money according to the ministry of finance and economic planning will be used to boost the government’s capacity to prevent, detect and treat coronavirus, protect the poor and vulnerable population and support economic recovery.
According to research conducted by the economist in Uganda, about 3.15 million citizens were likely to be sent into poverty due to the devastating effects of Covid-19.
“The Covid-19 pandemic has had a significant impact on the economy and livelihoods. This budget support operation will enable the Government to provide vital services, social safety nets and a more robust shock-responsive system for the long term; and the economy to recover faster,” Tony Thompson, World Bank Country Manager for Uganda told journalists.
The Covid-19 pandemic, flooding and the locust invasion have hurt the economy, dimming Uganda’s projected overall economic growth to a low 3-4 per cent in the financial year 2020/2021 from an earlier projected 6.3 per cent.
Presenting the country’s annual budget for 2020/2021 recently, Finance Minister Matiya Kasaija said the country will inject money directly to support cash for work labour intensive programmes to benefit some half a million people.
Last month, the Governor of Bank of Uganda, Emmanuel Mutebile cautioned the government on continued borrowing. This he said would lead the country into tough economic times.