This paper provides a general background on resources for poverty eradication in Uganda. It specifically documents and analyses the Government of Uganda’s public expenditure in, and donor contributions to, the education, health and agriculture sectors between 1998 and 2010. The paper further analyses aid flows to the country in terms of total volumes, top donors and allocation to the three sectors.
The purpose of this analysis is to reach a cross-section of public officials to assist in planning and the allocation of resources. This paper will also be useful for civil society organisations involved in advocacy and campaigning on national budgeting and planning, as well as researchers and students.
The report reveals that despite major strides taken in reducing poverty, the economic picture, in a country where 10% of the population is classified as chronically poor, is complex.
The report also reveals that:
- Uganda has one of the fastest growing economies in the world. Over the past 12 years, the country’s real gross domestic product (GDP) has grown at an average rate of over 7% per year and yet poverty has fallen by just 6.6% in 4 years.
- The United States and the World Bank continue to be Uganda’s main donors.
- Proportional public expenditure for education, health and agriculture has reduced due to the emergence of other sectors such as energy, increasing costs of public sector management and administration and high spending on security.
- Over the last two decades only 2.4 million people have been lifted out of poverty, due to high population growth rates. Although chronic poverty has reduced, more than 10% of the population (the equivalent of at least 3.5 million people) are classed as chronically poor.
- Almost three-quarters of the population suffer from at least one type of deprivation, outside of income.
Uganda’s under-5 mortality rate is close to the sub-Saharan African average, at 128 deaths per 1000 births. This makes it the second worse country in the region for this indicator.