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| World Bank Poverty Funds Cut Over Management Concerns | |
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30.May.2007
The World Bank's International Development Association (IDA) has reduced support for poverty alleviation programmes in Uganda over concerns about the allocation of funds and financial management.
The IDA is a section of the World Bank that makes interest-free loans to the world’s poorest countries.
Uganda's World Bank Country Manager, Grace Yabrudy, said the reduction in IDA support from US$150 million to $125 million for the Sixth Poverty Reduction Support Credit (PRSC), underlines the need for the government to consider ways of improving performance in budget execution, decentralization and anti-corruption.
She was speaking during the signing of two development credit agreements - US$125 million for poverty reduction and another $300 million for the expansion of the country's power sector.
Yabrudy said Uganda’s resource requirements for a sustainable, high growth and pro-poor development were far higher than the savings generated domestically.
She said the cost of public administration significantly exceeded the approved budget, necessitating a supplementary allocation at the end of the 2005-2006 fiscal year.
However, she added, the World Bank was confident Uganda would regain its development momentum and "claim its rightful place as a high-impact, results-oriented, pro-poor development
Uganda's Finance Minister, Ezra Suruma, acknowledged that the government had spent more resources on administration than budgeted.
Suruma said that In order to maintain peace and harmony, Government had to spend some funds on the creation of new districts and elections. He said that this pushed the budget on public administration up, but said that this would not recur.
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