- The report on the national economy and the state of indebtedness, grants, and guarantees indicated that Uganda’s debt shot up to Shs 69.513 trillion ($19.54 billion) by the end of the financial year 2020/21, from Shs 56.938 trillion in FY 2019/20.
According to the latest parliamentary committee report, Uganda’s public debt stock has increased by 22 per cent. The report on the national economy and the state of indebtedness, grants, and guarantees indicated that Uganda’s debt shot up to Shs 69.513 trillion ($19.54 billion) by the end of the financial year 2020/21, from Shs 56.938 trillion in FY 2019/20.
The statistics revealed that by the end of June 2022, the total public debt stood at Shs. 78.799 trillion ($20.98 billion), including Shs 48.136 trillion ($12.8l4 billion) as external and Shs 30.662 trillion ($8.162 billion) in domestic debt. It also pointed out that Uganda’s debt to Gross Domestic Product ratio rose to 48.6 per cent, just a few points away from the East Africa ceiling of 50 per cent. The rise in debt was attributed to the Ugandan government’s efforts to increase public investment in infrastructure in preparation for oil production and the Covid-19-related expenditures. Investments in other key sectors such as agriculture, energy, education, water and environment, and roads have also gone up.
A study by the National Planning Authority has pointed out that a major challenge of Uganda’s growth was incomplete projects, with many running on borrowed funds. The result was that despite the low-interest rates charged on the loans; the cost became high as they failed to fulfil the objectives. They neither delivered the intended plans and benefits nor unlocked the growth of the country as it should be.
Also read;
https://trendsnafrica.com/bank-of-uganda-lowers-economic-growth-projection/
https://trendsnafrica.com/uganda-disputes-world-bank-ranking/
