The government has earmarked Shs 2.7 trillion for debt interest payment according to the budget framework papers for the financial year 2018/2019.
This portion is equivalent to 12.3 percent of the budget.
Interest payment will be followed by Energy and Mineral Development sector projected to take Shs 2.5 trillion which is equivalent to 11.5 percent of the budget.
"Government's interest payments are projected at Shs 2,701 billion in financial year 2018/19, of which Shs 2,279 billion is interest on domestic securities (Treasury bills and bonds) and the rest is interest on external debt," the budget framework paper reads.
The budget framework paper further explains that the interest payment figure is projected to rise to Shillings 2,788 billion in the financial year 2020/21 and will amount to Shs 3084 billion during financial year 2021/22.
Uganda's public debt stands at $ 8.7 billion (approximately Shs 28 trillion).
In the coming financial year, the government plans to raise Shs 940 billion from the domestic market through issuance of securities.
The Civil Society Budget Advocacy Group coordinator, Julius Mukunda, said debt sustainability is becoming a big issue.
Mukunda said the government is managing national resources recklessly such as spending money on the presidential age limit removal, continuous creation of districts and government agencies.