the financing requirements could create undesirable macroeconomic hardships and may be politically unattainable in the case of uganda for example the scenarios show that financing new infrastructures through higher directtax revenues spurs gdp growth and household consumption relatively less than does for example financing them through foreign resources however the use of foreign resources affects export growth negatively owing to real exchange rate appreciation the feasibility of this scenario will depend however on the political conditions for improving the efficiency of government spending andor reallocating resources towards the agricultural sector