Uganda Oil Revenue Management : Closing Gaps in the Fiscal and Savings Frameworks to Maximize Benefits
After Uganda enjoyed two decades of strong growth and poverty reduction in the 1990s and early 2000s, its economy slowed down, and social progress decelerated amid a steady increase of the population. Several constraints continue to undermine progr...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/873501591694701210/Uganda-Oil-Revenue-Management-Closing-Gaps-in-the-Fiscal-and-Savings-Frameworks-to-Maximize-Benefits http://hdl.handle.net/10986/33899 |
| Summary: | After Uganda enjoyed two decades of
strong growth and poverty reduction in the 1990s and early
2000s, its economy slowed down, and social progress
decelerated amid a steady increase of the population.
Several constraints continue to undermine progress and
social and economic transformation in Uganda. The start-up
of oil production and revenues has the potential to
accelerate growth by addressing some of the constraints to
economic transformation, but it has to be managed well.
Actual revenues from oil will depend on levels of production
and international oil, with significant impact on government
revenue, exports, and investmentsMaximizing the benefits
from oil revenues requires maximizing efficiency across the
entire revenue chain. Several analytical and technical
assistance programs have recommended specific reforms to
help Uganda maximize the dividends from its oil. This paper
reassesses the adequacy of Uganda’s public finance systems
in providing an appropriate fiscal framework for determining
spending as well as setting aside and managing savings for
future generations. The rest of the paper is organized in
three sections. Section 2 provides an update on the state of
development of Uganda’s oil sector. Section 3 discusses the
current fiscal framework and what would need to be adjusted
before the oil revenue starts flowing. Section 4 delves into
the institutional design and operational management of the
petroleum revenue investment reserve, and how it could be
turned into a genuine SWF for Uganda. |
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