Overview:
Secretary to the Treasury Ramathan Ggoobi dismisses concerns that election spending will cause inflation, citing a decline in consumer prices to 3.1% in December 2025.
KAMPALA, Uganda — The Ministry of Finance has dismissed public fears that increased government spending during the election cycle will lead to a spike in consumer prices or economic instability.
Ramathan Ggoobi, the permanent secretary and secretary to the treasury, said Saturday that the government has implemented strict measures to prevent election-related inflation. Speaking on KFM’s Hot Seat program, Ggoobi said the ministry and the Bank of Uganda are working in tandem to manage the money supply.
I want to assure every Ugandan wherever you are, that there is nothing like election money destabilizing us in Uganda, Ggoobi said. It is not there.
The treasury chief noted that the country’s monetary policy is working effectively, pointing to a consistent downward trend in inflation over the final quarter of 2025. Inflation declined to 3.1% in December, following rates of 3.2% in November and 3.4% in October.
Ggoobi attributed the cooling prices to a rise in domestic production, specifically within the agricultural sector. He credited the Parish Development Model, a government initiative that has received roughly 4 trillion shillings in funding, for bringing more citizens into the productive economy and increasing the food supply.
While some critics in Kampala expressed early skepticism regarding the program, Ggoobi said the investment has successfully boosted production capabilities at the local level.
He said the current economic climate is no longer defined by too much money chasing too few goods.