Written By | Our Reporter
Dr. Ggoobi noted that inflation has been steadily declining, falling to 3.1 per cent in December 2025 from 3.2 per cent in November and 3.4 per cent in October
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Kampala
The Permanent Secretary to the Treasury, Dr. Richard Ggoobi, has dismissed fears that increased government spending ahead of elections could trigger inflation. Speaking to the media in Kampala this morning, Dr. Ggoobi said: “I want to assure every Ugandan, wherever you are, that there is no such thing as election money destabilising our economy. It simply does not exist.”
He explained that coordination between the Ministry of Finance, Planning and Economic Development and the Bank of Uganda has been strengthened.
“The monetary policy is working effectively, and the Governor and his staff are doing a commendable job managing the money supply,” he said.
Dr. Ggoobi noted that inflation has been steadily declining, falling to 3.1 per cent in December 2025 from 3.2 per cent in November and 3.4 per cent in October.
“What causes inflation is having too much money chasing too few goods,” he explained, adding that this is no longer the case in Uganda.
He also highlighted the role of the Parish Development Model (PDM) in boosting economic activity.
“Investment in the PDM was a key strategic decision by President Museveni and his government because it brought production capabilities to people who were previously outside the economy. This has helped increase food production,” Dr. Ggoobi said.
According to the Permanent Secretary to the Treasury, the government has already released about Shs4 trillion for the PDM, with many citizens investing successfully, contrary to the initial scepticism expressed by some Kampala elites.
