KAMPALA
Civil Society Organizations have urged financial institutions, including the Ministry of Finance and the Bank of Uganda, to tighten fiscal responses ahead of the 2026 general elections, warning that excessive and populist spending could trigger inflation.
Speaking at a media briefing at the Civil Society Budget Advocacy Group (CSBAG) offices in Ntinda, the Executive Director, Julius Mukunda, called for restraint in public expenditure, emphasizing efficiency and discipline to safeguard macroeconomic stability. Mukunda noted that past election periods have often been associated with what he described as “political inflation,” driven by increased government spending aimed at winning popular support.
Mukunda stressed the need for complementary fiscal and monetary policies to prevent inflationary pressures and rising public debt. He warned that failure to closely monitor election-related spending could lead to the diversion of funds from critical long-term sectors such as agriculture, health, and industrial development to short-term political handouts.
He further urged the Bank of Uganda to maintain a tight monetary policy stance to keep inflation within the 5 percent target, emphasizing the importance of vigilant interest rate management to cushion the economy from post-election shocks.
