Civil Society Warns Government On Unsustainable Debt

The government has earmarked 2.7 trillion shillings for debt interest payment shown in the Budget Framework Paper for the Financial Year 2018/2019. This according to Civil Society Organizations is suffocating funding to critical sectors of the economy. “We observe with concern that the increase in expenditure on interest payment from 2 trillion in Financial Year 2016/2017 to now proposed 2.7 trillion is steadily clouding out expenditure on social sectors. We are going back to become a highly indebted poor country.” Said, Julius Mukunda – ED, Civil Society Budget Advocacy Group.

Civil Society Organizations have also underscored the need for policymakers to prioritize funding to research in order to stimulate productivity and growth in the agricultural sector. “If you look at the detail of the agricultural sector budget as proposed in the Budget Framework Paper, we are seeing a cut in financing our research from 84 billion to 73 billion. We are very concerned that at one moment you will have 2 million for research in this country. So whether we have a law or we don’t have a law, biotechnology is not done for free.” Said, Agnes Kirabo – Executive Director, Food Rights Alliance. “In comparison to NBP2 Public costing for Financial Year 2018/2019 only 5 out of 16 sectors are on course, this being the fourth year of implementation of the 5 years own NBP2. The total variance of 2.5 trillion implies that Uganda is less likely to achieve its middle-status income and as such to redeem this situation you ask that an expenditure in mid-term review needs to be done immediately.”

This after policy recommendations in the National Budget Framework Paper with experts calling for a halt on creation or operation of new administrative units, merging of government correspondences to address expenditure challenges among others.