The Deputy Presidential Press Secretary Faruk Kirunda has said Uganda would not have accumulated the over Shs73 trillion public debt if the public sector used the available funds optimally.
Mr Kirunda says by utilizing the available funds well, avoiding wastage and corruption, the East African country will not be suffering and trying to forge ways on how it will repay back the multi-trillion debt.
“We would not be in this situation if the public sector used available funds optimally by avoiding wastage and corruption. Money should be used for what it is allocated to do. Increased production and equitable tax mobilisation would also alleviate the problem,” he tweeted on Saturday.
Mr Kirunda’s advice follows a revelation by Parliament on Friday that Uganda’s public debt increased by a whopping 15 per cent from 2020 to December 2021, to the last recorded Shs73.5 trillion.
Debt is expected to continue rising, with projections it will get to over 52 per cent of GDP, according to Budget Committee Chairperson, Patrick Opolot Isiagi.
“Public debt is on the rise and projected to reach 52.9 per cent of GDP in 2022/23 and the country’s debt sustainability metrics are characterized with slow export growth and increasing debt service,” Opolot told legislators as Parliament passed a Shs48.1 trillion budget for financial year 2022/23 with post Covid-19 economic recovery high on the agenda.
The Finance State Minister, Henry Musasizi, who shepherded the Budget on behalf of President Yoweri Museveni said there is need to heal the economy from the ravages of Covid-19.
“This budget of financial year 2022/23 will mark the recovery for this economy; our economy has been affected by shocks such as the Covid-19 pandemic, the regional geo-political conflicts, climate change…these developments affected government’s financial position through the reduction in government revenue,” said Musasizi.
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