Home News Authorities addressing public debt disaster – Finance minister

Authorities addressing public debt disaster – Finance minister

Authorities addressing public debt disaster – Finance minister


In an effort to deal with the escalating public debt disaster, authorities has give you methods aimed toward managing and lowering the nation’s debt stage.

Showing earlier than the Committee on Presidential Affairs on Friday, 07 July 2023, the Minister of State for Finance, Planning and Financial Improvement (Common Duties), Hon. Henry Musasizi, emphasised the significance of controlling borrowing.

As of December 2022, the nation’s whole public debt inventory stood at US$21.74 billion.

“Now we have made a deliberate determination as guided by the President that borrowing needs to be for particular areas which contribute to the expansion of the economic system. And the areas are in irrigation, electrical energy, transport particularly roads and railways and ICT,” he mentioned.

To realize this aim, authorities has shifted its focus in direction of securing extra concessional loans reasonably than business loans.

“Contracting concessional loans permits us to minimise the pressure on our funds and create a more healthy borrowing surroundings. It’s a essential step in managing our debt successfully,” he mentioned.

As well as, authorities goals to curb home borrowing, with the last word goal being to convey it under one per cent of the GDP over the medium time period, which the minister mentioned is crucial to make sure the steadiness of the home economic system.

To boost income mobilisation, authorities will improve the implementation of its Home Income Mobilisation Technique.

In accordance with Musasizi, authorities has additionally launched into management and lowering authorities expenditure.

Concerning the proposed borrowing for the Larger Kampala Metropolitan Space City Improvement Programme (GKMA-UDP) of as much as US$600 million, the minister mentioned that the borrowing initiative will help a vital growth programme whereas adhering to our methods to handle the nationwide debt.

Nonetheless, a part of the US$600 million mortgage has not been authorized by the President in keeping with Musasizi.

The committee chairperson, Hon. Jessica Ababiku, tasked the minister to clarify why they don’t have approval from the President.

She gave the committee one week to offer the President’s letter, stating that they don’t wish to erroneously approve a mortgage.

“We will proceed with what’s full when it comes to the approval. We have no idea why that was not authorized,” Ababiku mentioned.

Musasizi pleaded with committee to course of the mortgage as they watch for the letter from the President.

“On the French mortgage, the President is but to offer us the letter clearing it. The letter we’ve got is the one of many World Financial institution mortgage. However I’m positive subsequent week, the President will clear,” he mentioned.

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