The objective of Monitoring and Evaluation (M&E) is to enable Government to make decisions that will keep the implementation of the PEAP on track.  M&E derives its value from the flow of relevant information to decision makers, who can then make informed decisions on whether modifications to policies and spending programmes are necessary. 

M&E functions when it supplies managers with a flow of reliable information and analysis about what works and what doesn't, as a basis for public action.  It also keeps other stakeholders (the legislature, the public, civil service organisations and development partners) informed about the progress being made in implementing the PEAP, and therefore enables them to offer informed advice to decision makers and, where appropriate, to modify their own policies and programmes.
 
Progress has been made in the development of capacity for M&E. Attention to M&E has increased the quality of decision making in terms of formulation, budgeting and operational management. The increased availability of information concerning national poverty eradication efforts has also allowed civil society, Parliament and development partners to exert more influence over public policy.

A major part of the progress derives from the Poverty Monitoring and Evaluation Strategy (PMES), developed in 2001, which represents an overarching plan for M&E within the context of the PEAP.  The PMES identified a set of 33 priority indicators for implementation of the PEAP, for which a systematic effort was made to establish a baseline and target. The PMES classifies indicators along five links of the results chain: input, output, process, outcome, and impact (sometimes also called 'final outcome'). Information is available on these indicators, albeit to a variable degree of regularity and accuracy.  The PMES also identifies institutional responsibilities for poverty monitoring.

The PMES uses three main types and sources of data: those collected by Uganda Bureau of Statistics (UBOS) on the basis of surveys; those collected by sector ministries through their management information systems; and those collected by Uganda Participatory Poverty Assessment Process.  UBOS has developed a robust demographic and household poverty dataset, which allows monitoring of national progress against many of the priority indicators outlined in the PMES, including the MDGs. 

Since 2003, UBOS has been responsible for the National Service Delivery Survey on client satisfaction with services.  It also maintains a district resource endowment profiles database.  Sector ministries have developed/are developing management information systems in line with the establishment of sector programmes under the Sector Wide Approach (SWAP).  The Uganda Participatory Poverty Assessment Process (UPPAP) provides qualitative perspectives on the nature of poverty by bringing the voices of the poor into planning processes.