Uganda in Shs41 trillion debt

Agnes Tumuheire — Wed, 03 Oct 2018 11:15:05 +0000

State Minister of Finance for Planning, Hon David Bahati: COURTESY PHOTO

The State Minister of Finance for Planning, Hon David Bahati, has declared that Uganda’s public debt is at Shs41 trillion, which is an equivalent of US$10 billion.

In a statement to Parliament read by Bahati, government also said the debt stock has increased from US$2.5 billion in the 2006/2007 financial year to US$10.7 billion by the end of the last financial year.

By the end of June 2018, the total debt amounted to US$10 billion, with external debt accounting for 67 per cent.

According to minister Bahati the the rising debt has been caused by the stagnant tax collection.

“Our tax base is not growing at the same rate,” he added, putting the tax to Gross Domestic Product (GDP) ratio at 14.3 per cent.

The domestic debt stands at 32.4 per cent, most of which is drawn from local commercial banks.

Public debt is at 30 per cent. However the opposition members of parliament have objected a figure the Opposition is reluctant to believe.

Hon Ibrahim Ssemujju, the chief opposition Whip condemned government’s actions of piling up debts a thing that has put the country at stake.

“After borrowing this money, and we see the way His Excellency the President is throwing money at youth groups…you just need to be prudent on the way you spend money,” Ssemujju said.

Budadiri West MP Nandala Mafabi urged the government to come up with a gross loan request during the drafting of the National Budget.

“As soon as we pass a loan, the first people to celebrate are the sharks out there…if we put in a basket fund, the bids will not be expensive,” remarked Nandala.

Deputy Speaker, Jacob Oulanyah, referred the statement to the Committee on National Economy.

“The challenge that I face when presiding here is killing debate…just see the way we are proceeding now, we make these issues so trivial yet they are very serious,” said Oulanyah.

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Financial year ends as budget is explained

Isaac Senabulya — Tue, 30 Jun 2015 13:59:16 +0000

Keith Muhakanizi

The secretary to the treasurer, Keith Muhakanizi revealed that government has managed to save over UGX 200bn in the ending financial year which is to be used to fund other government programmes. Muhakanizi while responding to questions from journalists, said, the fund arose from checking on power government spending, coupled with efforts to combat graft among different government institutions.

He also noted that with the next financial year starting tomorrow, it is this week that finance will be releasing funds for the 1st quarter to all government agencies and departments and urged all accounting officers to account for the resources very well. Muhakanizi added that government will not over shoot the expenditure for this starting financial year so as to enforce proper financial discipline.

Matia Kasaija

In another meeting, the Finance Minister, Matia Kasaija and the Central Bank governor have come out to give clarity on the UGX 23,972 bn budget saying the passed figure included provisions for the domestic debt repayment of amount UGX. 4,787 Bn for government treasury bills and bonds which will be rolled over as and when they mature in the course of next financial year.

At a news conference held in Kampala today, the Finance Minister made it clear that provisions for the domestic debt repayments is a requirement of the new Public Finance Management Act 2015, adding that the real budget expenditures for the next financial year starting tomorrow total to UGX 19, 184bn and it is upon this factor that the Minister calls on Ugandans to pay taxes to enable government fund its programmes.

However on the issue of exchange and weakening of the local currency, the Minister and the governor attributed the matter to the strengthening of the dollar against other currencies coupled with large sums of imports over exports made by Ugandans. The economists called on Ugandan manufactures among other business community members to increase on exports to help save the shilling from further depreciation which has caused negative impacts to people’s businesses.

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Uganda in Shs41 trillion debt

Financial year ends as budget is explained