Ministry of Finance allays fears on election-induced inflation

The Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramadhan Ggoobi, has dismissed fears among sections of the public that the upcoming election period could trigger inflation.

Elevated government spending coupled with widespread voter bribery and campaign expenditure has resulted in inflation spikes in recent elections, such as the 2011 elections which sparked the famous “walk to work” protests.

Speaking during an appearance on KFM on Saturday, Dr. Ggoobi assured Ugandans that there is no election-related money destabilising the economy.

“I want to assure every Ugandan wherever you are, that there is nothing like election money destabilising us in Uganda. It’s not there,” he said.

Dr. Ggoobi noted that coordination between the Ministry of Finance, Planning and Economic Development and the Bank of Uganda has been strengthened, ensuring that monetary policy continues to function effectively. He commended the Governor and staff of the central bank for their role in managing the money supply prudently.

He pointed to recent inflation figures as evidence of this effective coordination. Inflation declined to 3.1 per cent in December 2025, down from 3.2 per cent in November and 3.4 per cent in October. 

According to Dr. Ggoobi, this downward trend reflects sound economic management rather than election-driven pressures.

“What causes inflation is having too much money chasing few goods,” he explained, adding that this is no longer the case in Uganda.

Dr. Ggoobi cited the Parish Development Model (PDM) as one of the government’s key strategic interventions aimed at sustaining economic stability. 

He said the decision by President Yoweri Museveni and his government to invest heavily in PDM was intended to bring productive capacity to communities previously excluded from the formal economy.

According to the PSST, government has so far disbursed about Shs 4 trillion under the programme. Contrary to scepticism from some urban elites, particularly in Kampala, many beneficiaries at the parish level have invested the funds productively. 

This, he said, has contributed to increased food production and helped ease inflationary pressures.

Dr. Ggoobi concluded that with continued policy coordination and grassroots investment, Uganda remains on a stable economic path despite the election season.