Concerns on the increasing public debt burden continue to dominate debate and this time, Deputy Speaker, Thomas Tayebwa has directed the Committee on National Economy to make an assessment of the country\u2019s public debt and report back to Parliament.\u00a0<\/p>\n\n\n\n
Tayebwa made the directive during the debate on the National Budget Framework Paper for financial years, 2024\/2025 – 2028\/2029 (NBFP) on Tuesday, 30 January 2024.<\/p>\n\n\n\n
According to the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, the composition of public debt stock as at the end of June 2023, was Shs86.7 trillion.<\/p>\n\n\n\n
Tayebwa gave the Committee on National Economy one month to assess the public debt to allow the legislators to debate the matter.<\/p>\n\n\n\n
\u201cIt is an issue which we can come here and debate and they give an argument where they base themselves. I have interacted with speakers of other countries, and surprisingly, they say our debt is sustainable compared to theirs,\u201d said Tayebwa.<\/p>\n\n\n\n
Tayebwa\u2019s directive followed a call by Butambala County Member of Parliament, Hon. Muwanga Kivumbi urging Parliament to spare time, specifically to tackle the increasing burden of public debt.<\/p>\n\n\n\n
Muwanga Kivumbi said that Uganda is on the verge of getting blacklisted for failure to repay debts.<\/p>\n\n\n\n
\u201cWe will be debt refinancing this financial year more by a whooping Shs9 trillion. Interest is going to increase on our domestic debt by a whopping Shs1 trillion,\u201d said Muwanga Kivumbi.<\/p>\n\n\n\n
He added, \u201cwe need to sit because if we don\u2019t, we have fundamentally mortgaged this country to a level we cannot imagine. We need to crack this animal called national debt and the way we are borrowing, otherwise, we are in a deep hole,\u201d said Muwanga Kivumbi.<\/p>\n\n\n\n
Hon. Mathias Mpuuga (NUP, Nyendo Mukungwe) faulted the Minister of Finance for failure to lay a public debt management framework, which he said is a requirement under the Public Finance Management Act.<\/p>\n\n\n\n
\u201cWe need to understand how you will manage the public debt. The law demands that the minister lays this framework immediately after laying the Charter of Fiscal Responsibility,\u201d Mpuuga said.<\/p>\n\n\n\n
Hon. Hassan Kirumira (NUP, Katikamu County South) also called on the Minister of Finance to furnish Parliament with the details of lenders, to enable lawmakers to make informed recommendations.<\/p>\n\n\n\n
\u201cIf we do not do this at this stage, we will find ourselves in a state where we will suffer a loss because of lack of planning. We agree on borrowing but we need to be precise on the source of borrowing, terms and conditions of money lenders,\u201d said Kirumira.<\/p>\n\n\n\n
The lawmakers also tasked the Ministry of Finance to prioritise payment of domestic arrears which as of 30 June 2023, stood at Shs2.7 trillion.<\/p>\n\n\n\n
The Leader of the Opposition, Hon. Joel Ssenyonyi questioned why the government puts more focus on repayment of external debts and yet the domestic arrears is owed to local suppliers who form the majority of taxpayers.<\/p>\n\n\n\n
\u201cLocals employ youths, their businesses are closing and the entire economy suffers and yet we focus on investors. Let us get serious,\u201d Ssenyonyi Said adding that, \u201conce people provide goods and services to you and you have not paid them, you owe them, it is a debt.\u201d<\/p>\n\n\n\n
In the 2024\/2025 financial year budget, the Ministry of Finance has allocated Shs200 billion to clear part of the Shs2.7 trillion, which Ssenyonyi said is insufficient. <\/p>\n\n\n\n
Musasizi said that whereas the Ministry of Finance is committed to reducing the domestic arrears, they are limited by the available resources.<\/p>\n\n\n\n
\u201cWe have a commitment as a ministry that at least on an annual basis, we as much as possible try to reduce them [domestic arrears]. I wish we had all the resources to settle the Shs2.7 trillion at ago. The spirit is there but what is limiting us is the resources,\u201d said Musasizi.<\/p>\n\n\n\n
The Chairperson of the Budget Committee, Hon. Patrick Isiagi however, said that it is unfortunate that the government is still grappling with domestic arrears even after instituting a commitment control system where orders are placed if funds are available.<\/p>\n\n\n\n
\u201cAccounting officers commit according to work plans but at the end of the day, the Ministry of Finance does not release funds,\u201d Isiagi said.<\/p>\n\n\n\n
The NBFP, which is the government’s overall strategy document for the budget, and provides the link between the government’s overall policies (identified in the National Development Plan) and the annual budget was presented by the Minister, Musasizi, during a plenary sitting on Thursday, 25 January 2024.<\/p>\n\n\n\n
The 2024\/2025 resource envelope is projected at Shs52.7 trillion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Concerns on the increasing public debt burden continue to dominate debate and this time, Deputy Speaker, Thomas Tayebwa has directed the Committee on National Economy to make an assessment of the country\u2019s public debt and report back to Parliament.\u00a0 Tayebwa made the directive during the debate on the National Budget Framework Paper for financial years, […]<\/p>\n","protected":false},"author":27983,"featured_media":24021,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_paywall_metabox":[],"jnews_override_counter":[],"footnotes":""},"categories":[101],"tags":[31,119],"class_list":["post-38271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-featured","tag-uganda-news"],"yoast_head":"\n