Uganda - Second Structural Adjustment Loan

The Second Structural Adjustment Loan (SAL II) project aims at providing balance of payments support to the Government of Uganda while it undertakes reforms towards the attainment of fiscal sustainability. The program consists of reform measures for the attainment of fiscal sustainability through enhanced revenue mobilization and public expenditure control. To achieve the objective of fiscal sustainability, the programme will support (i) revenue mobilization measures under which the Government will widen the tax base and improve tax adminstration; (ii) public expenditure reform aimed at limiting budgetary supplementaries, and prioritizing government spending to ensure adequate funding of expenditures that have the greatest impact on poverty reduction; (iii) a restructuring of state-owned enterprises that will permit a cut in government subsidies; and (iv) financial sector reform to strengthen the commercial banking sector and the Bank of Uganda.