Fiscal Policy, Uncertainty and Output Growth in Uganda: 1980-2020

Does uncertainty inevitably alter how Uganda’s fiscal policy and influences the country’s economic growth? Using most recent datasets rigorous econometric practice, we offer an empirical response to this fundamental topic. Indeed, several nations frequently tweak their policies as a way give countercyclical stimulus during periods of uncertainty. In fact, operations fluctuate regularly with sequence thus create two-way interaction between policy, uncertainty, output growth. We demonstrate using Autoregressive Distributed Lag Model that in presence tax revenue expenditure are affected, whereas borrowing is least affected both short long term. Consequently, fragility rising global domestic destined generate huge considerable divergences predicted actual growth outturn unless government macroeconomic frameworks adequately include uncertainties estimates. As result, urge be used effectively possible promote maintain While revenues have been shown short- long-term, effect will diminish face