UPDATE 1-Uganda prospects good; needs fiscal reform -IMF

* Fund says govt needs to rebuild fiscal balances
* Needs to broaden tax base
* Oil revenues need to be handled transparently

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NAIROBI, April 5 (Reuters) - Uganda's economic performance will likely remain strong but the government needs to press ahead with fiscal reforms, the International Monetary Fund said.
Thomas Richardson, who is heading an IMF mission, said in a statement that Uganda would need to unwind its stimulus programme and rebuild its fiscal balances and international reserves.
Inflation has been rising and hit 11.1 percent year on year in March due to higher food prices, rising fuel costs, exchange rate depreciation, and high rates of private sector credit growth, Richardson said after meetings with government officials.
"Uganda has strong prospects for economic growth in the coming years, particularly if the authorities can successfully manage the macroeconomic challenges associated with Uganda's planned acceleration in infrastructure spending," he said.Continued