Budget Speech: Middle Income Status Now Projected for 2022

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Uganda is projecting to hit the middle income status in the year 2022/2023, having missed the target in the previous year of 2020.

This was revealed by State Minister for Planning Amos Lugoloobi who presented this year’s budget speech before Parliament at Kololo.

Minister Lugoloobi revealed that by financial year 2022/23, which is the third year of implementation of the NDP III, Ugandans per capita income is expected to have reached $1039 which ushered the country into the middle income status.

The per capita income he said has been growing steadily from $808 in Financial Year 2015/16 to the projected US$ 932 in this Financial Year 2020/21.

“We expect to achieve middle-income of US$ 1,039 within the third year of NDPIII implementation,” he said.

Commenting on why Uganda missed its 2020 target, Minister Lugoloobi said a number of factors were responsible.

First he said production was lower than expected, especially in agriculture; and that there were “inefficiencies in public investments, resulting in less-than-optimal returns.”

He also blamed “the shocks from natural disasters, especially in the last two years.”

A recently conducted Household Survey indicated that poverty in the country has declined from 21.4% in 2016/17 to 20.3% in 2019/20.

However, the minister noted that 39% of Ugandan households are still in subsistence economy.

Source – ChimpReports

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