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UGANDA outstanding temporary advances and ensure their prompt repayment. This should help reduce the likelihood of a situation where the temporary advances are used in order to bypass issuances of treasury securities in the domestic financial market, resulting in monetization of fiscal deficits and potential inflationary pressures. The cumulative change in temporary advances from the BoU to the central government is defined as the cumulative change, from the beginning of the respective fiscal year, in adjusted net claims on the central government by the BoU. The adjusted net claims on the central government by the BoU is defined as the difference between the outstanding amount of BoU credit to the central government and the central government's deposits, excluding deposits in administered accounts (including the energy and petroleum funds), project accounts with the central bank, and net recapitalization securities (recapitalization securities provided to the central bank less those used for monetary policy purposes). Credits comprise BoU loans and advances to the government and holdings of government securities and promissory notes. 11. The cumulative change in temporary advances from the BoU to the central government will be calculated based on data from balance sheets of the monetary authority as per the DCS. FLOOR ON EXPENDITURES ON POVERTY ALLEVIATING SECTORS (IT) 12. The indicative target on the floor on poverty alleviating expenditures includes domestic expenditures inclusive of wages and salaries in the Health, Education, Water and Environment and Agriculture sectors, as defined by the Government of Uganda functional budget classification, excluding those which are externally financed. Compliance with the indicative floor for poverty alleviating expenditures will be verified on the basis of releases. CEILING ON ISSUANCE OF GUARANTEES BY THE GOVERNMENT OR BANK OF UGANDA (IT) 13. The indicative target on issuance of guarantees by the GoU or the BoU aims to prevent accumulation of contingent liabilities by the GoU (including entities such as ministries, agencies and authorities). Included against the ceiling are any direct, contingent liabilities of the GoU (including entities that are part of the GoU such as ministries, agencies and authorities). This excludes guarantee programs which have explicit budget appropriations. TAX REVENUE (IT) 14. A floor applies on tax revenue of the central government measured cumulatively from the beginning of the fiscal year. For program-monitoring purposes, tax revenue is defined as the sum of direct domestic taxes (PAYE, corporate tax, presumptive tax, other direct taxes, withholding tax, rental income tax, tax on bank interest, casino tax and unallocated receipts); excise duty and value-added taxes net of refunds; infrastructure levy; and taxes on international trade minus temporary road licenses and fees to hides and skins, as defined by the GoU’s revenue classification. INTERNATIONAL MONETARY FUND 49
UGANDA NET ACCUMULATION OF DOMESTIC ARREARS OF THE GOVERNMENT (IT) 15. A ceiling applies to net accumulation of domestic arrears of the central government as an indicative target. A negative target thus represents a floor on net repayment. The ceiling for each test date is measured cumulatively from the beginning of the respective fiscal year. 16. An unpaid bill is defined as any verified outstanding payment owed by any entity that forms part of the central government votes for the following: utilities, rent, employee costs, other recurrent, court awards, compensation, contributions to international organizations, development, taxes, and other deductions. Domestic arrears are the total stock of unpaid bills as of June 30 of the fiscal year as reported in the consolidated financial statements of the GoU. 17. This indicative target will be observed on a semi-annual basis. For the quarter ending December 31, the net change in the stock of unpaid bills as reported in the semi-annual report on domestic arrears will be used as the indicative target. ADJUSTORS 18. The NIR and the overall deficit targets are based on program assumptions regarding: (A) budget support excluding assistance provided under the Heavily Indebted Poor Countries (HIPC) Initiative and the MDRI; (B) net inflows into the Petroleum Fund; (C) recapitalization of the BoU; (D) external financing tied to projects. and (E) Other recapitalization. Adjustor related to budget support The Uganda shilling equivalent of projected budget support (grants and loans) excluding HIPC Initiative and MDRI assistance in the form of grants on a cumulative basis from the beginning of the relevant fiscal year is presented under Schedule A. The floor on the cumulative increase in NIR of the BoU will be adjusted upward (downward) by the amount by which budget support, grants and loans, excluding HIPC Initiative and MDRI assistance, exceeds (falls short of) the projected amounts. The ceilings on the cumulative increase in overall deficit will be adjusted downward (upward) by the amount by which budget support grants, excluding HIPC Initiative and MDRI assistance, exceeds (falls short of) the projected amounts. 50 INTERNATIONAL MONETARY FUND
Page 1 and 2: January 2017 UGANDA IMF Country Rep
Page 3 and 4: 2 The banking sector remains overal
Page 5 and 6: UGANDA Approved By Roger Nord (AFR)
Page 7 and 8: UGANDA BACKGROUND AND RECENT DEVELO
Page 9 and 10: UGANDA Figure 1. Uganda: Real Secto
Page 11 and 12: UGANDA Figure 3. Uganda: Fiscal Sec
Page 13 and 14: UGANDA Figure 5. Uganda: Financial
Page 15 and 16: UGANDA PERFORMANCE UNDER THE PSI 6.
Page 17 and 18: UGANDA measures to increase revenue
Page 19 and 20: UGANDA 20. The authorities are addr
Page 21 and 22: UGANDA E. Program Design 29. The au
Page 23 and 24: UGANDA Table 1. Uganda: Selected Ec
Page 25 and 26: UGANDA Table 2b. Uganda: Fiscal Ope
Page 27 and 28: UGANDA Table 3. Uganda: Monetary Ac
Page 29 and 30: 26 INTERNATIONAL MONETARY FUND Tabl
Page 31 and 32: UGANDA monitoring. The amendments t
Page 33 and 34: UGANDA cessation of operations for
Page 35 and 36: UGANDA production. With inflation f
Page 37 and 38: UGANDA MACROECONOMIC OUTLOOK AND RI
Page 39 and 40: UGANDA Expenditure - focusing on ef
Page 41 and 42: UGANDA PFM Act, and be repaid befor
Page 43 and 44: UGANDA competition, financial inclu
Page 45 and 46: 42 INTERNATIONAL MONETARY FUND Tabl
Page 47 and 48: UGANDA Table 1.2. Uganda: Structura
Page 49 and 50: UGANDA Attachment II. Technical Mem
Page 51: UGANDA All changes will be calculat
Page 55 and 56: UGANDA Adjustor related to other re
Page 57 and 58: UGANDA Attachment Table II.1. Summa
Page 59 and 60: December 16, 2016 UGANDA SEVENTH RE
Page 61 and 62: UGANDA Assistance committed by all
Page 63 and 64: UGANDA mining and oil resource mana
Page 65 and 66: UGANDA Programmatic technical assis
Page 67 and 68: UGANDA STATISTICAL ISSUES (as of No
Page 69 and 70: UGANDA December 16, 2016 SEVENTH RE
Page 71 and 72: UGANDA Chart 1. Public Debt (Percen
Page 73 and 74: UGANDA finances the construction of
Page 75 and 76: UGANDA longer term bonds to 30:70.
Page 77 and 78: UGANDA Figure 2. Uganda: Indicators
Page 79 and 80: Table 2. Uganda: Public Sector Debt
Page 81 and 82: UGANDA Table 3. Uganda: Sensitivity

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