Uganda's Budget Deficit Up By 12 Pc.

(From East African (Kenya) - AAGM)

DONORS SAY Uganda's economy, one of the fastest growing in sub-Saharan Africa, is likely to rely heavily on external support as the country's budget deficit rises to 12.6 per cent of gross domestic product owing to increased spending on poverty reduction programmes and defence.

Uganda is also weighed down by an unsustainable defence bill caused by heightened insecurity in the north.

Ministries have already been directed to trim their budgets by up to 23 per cent to raise money to end the 16-year civil war. More than half of Uganda's budget is donor funded.

To ensure that the country does not backtrack on …