The Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, has dismissed concerns that Uganda could experience election-related inflation due to increased government spending ahead of the polls.

Speaking during a radio talk show on Saturday morning, Dr. Ggoobi reassured Ugandans that fears of so-called “election money” destabilising the economy are unfounded. “I want to assure every Ugandan wherever you are, that there is nothing like election money destabilising us in Uganda. It's not there,” Dr. Ggoobi said.

He explained that strong coordination between the Ministry of Finance and the Bank of Uganda has helped maintain macroeconomic stability, noting that monetary policy is functioning effectively. Dr. Ggoobi praised the Bank of Uganda Governor and his team for their role in managing money supply and keeping inflation under control.

According to the PSST, Uganda’s inflation rate has continued to decline, with headline inflation dropping to 3.1 percent in December 2025, down from 3.2 percent in November 2025 and 3.4 percent in October 2025.

Dr. Ggoobi emphasised that inflation typically results from excess money circulating in the economy without a corresponding increase in goods and services. “What causes inflation is having too much money chasing few goods,” said the PSST, adding that this is no longer the case in Uganda.

He attributed the improved economic outlook partly to government investment in the Parish Development Model (PDM), describing it as a strategic policy decision by President Yoweri Museveni and his administration. The initiative, he said, has expanded production capacity by integrating previously excluded populations into the formal economy.

Dr. Ggoobi noted that increased grassroots participation in production has boosted food output, helping to stabilise prices nationwide.

The PSST further revealed that the government has so far disbursed approximately Shs 4 trillion under the PDM programme. He said the funds have largely been put to productive use, contrary to scepticism from some urban elites.

According to Dr. Ggoobi, the success of the PDM demonstrates that targeted public investment can strengthen economic resilience while keeping inflation low, even during politically sensitive periods.