IDEAS home Printed from
   My bibliography  Save this paper

The Fiscal Effects of Aid in Uganda


  • Sonja Fagernäs
  • John Roberts


Working Paper 9 forms part of a set of four ESAU papers on the fiscal effects of aid in African countries. The others are on Malawi (Working Paper 7), on Zambia (Working Paper 10) and a literature Survey and Synthesis (Working Paper 11). The first, historical and analytical background, part of the paper contrasts the pre-1986 period of misrule, instability, conflict, the exodus of entrepreneurs and professionals, dwindling aid and economic decline, with the subsequent period when growth resumed, poverty fell, economic stability was restored, aid was substantial, and the government implemented budget management and pro-poor expenditure reforms. The second, econometric, part shows that the main effect of aid between the 1970s and 1990s was to increase development budget expenditure, with lesser positive impacts on recurrent budget expenditure and domestic revenue. The effectiveness of aid has therefore turned on the (rising) quality of development budget expenditure and on the (growing) credibility of accompanying economic policies.

Suggested Citation

  • Sonja Fagernäs & John Roberts, 2004. "The Fiscal Effects of Aid in Uganda," Working Papers 9, Economics and Statistics Analysis Unit (ESAU), Overseas Development Institute.
  • Handle: RePEc:odi:wpaper:9

    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. Giulia Mascagni & Emilija Timmis, "undated". "Fiscal Effects of Aid in Ethiopia: Evidence from CVAR applications," Discussion Papers 14/06, University of Nottingham, CREDIT.

    More about this item


    Fiscal; aid; aid effectiveness; Uganda; budget; economic growth;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:odi:wpaper:9. 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: (Vicky Tongue). 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.