IDEAS home Printed from
   My bibliography  Save this article

Public Spending Composition in Uganda and its Implications for Growth and Poverty Reduction


  • Edward Batte Sennoga

    () (Rwanda Country Office, African Development Bank, Kigali, Rwanda)

  • John Mary Matovu

    (School of Business and Management Science, Makerere University, Kampala, Uganda)


This article examines the interrelationships between public spending composition and Uganda’s development goals including economic growth and poverty reduction. The authors utilize a dynamic computable general equilibrium model to study these interrelationships. These results demonstrate that public spending composition does indeed influence economic growth and poverty reduction. In particular, the authors show that improved public sector efficiency coupled with reallocation of public expenditure away from the unproductive sectors such as public administration and security to the productive sectors including agriculture, energy, water, and health leads to higher gross domestic product growth rates and accelerates poverty reduction. Moreover, the rate of poverty reduction is faster in rural households relative to the urban households. A major contribution of this article is that investments in agriculture, particularly with a view to promoting value addition and investing in complementary infrastructure (e.g., roads and affordable energy), contribute to higher economic growth rates and also accelerate the rate of poverty reduction.

Suggested Citation

  • Edward Batte Sennoga & John Mary Matovu, 2013. "Public Spending Composition in Uganda and its Implications for Growth and Poverty Reduction," Public Finance Review, , vol. 41(2), pages 227-247, March.
  • Handle: RePEc:sae:pubfin:v:41:y:2013:i:2:p:227-247

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Karim, Azreen & Noy, Ilan, 2015. "The (mis) allocation of public spending in a low income country: Evidence from disaster risk reduction spending in Bangladesh," Working Paper Series 4194, Victoria University of Wellington, School of Economics and Finance.
    2. repec:ejn:ejefjr:v:6:y:2018:i:1:p:107-132 is not listed on IDEAS


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:41:y:2013:i:2:p:227-247. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.