National debt: CSOs tell government to tread carefully
The Civil Society Budget Advocate Group (CSBAG) on Sunday cautioned government for allocating huge funds towards foreign debt servicing, according to the 2019/2020 Budget Framework Paper.
CSBAG executive director Julius Mukunda, while addressing a press conference at CSBAG's Ntinda office said: “If government does not reverse this trend of allocating huge funds to service foreign debts, the possibility of realising middle income status come 2020 will be futile”
According to Mukunda, government will spend Shs 12 trillion in 2019/2020 budget on development expenditure, which amounts to 37 % of the total budget.
“The rest of the resources in the envelope are for debt repayment, interest payments and non-resource funds for domestic debt refinancing.
“It is important that Ugandans do not get excited for Shs 34 trillion since almost half of the items that comprise it are of no direct benefit”, he added.
Mukunda also said social sectors such as education, health, social development, water and environment plus agriculture, will face a drastic setback, as their budget has been reduced by 12% from Shs 7.7 trillion to Shs 6.8 trillion.
Joseph Olwenyi, Oxfam's project leader (Financing for Development) advised government to revisit the 2019/2020 budget framework paper, by prioritising education and health sectors, as they play a critical role in the development of a nation.
“Government should endeavour to eradicate poverty, diseases and ignorance in the Ugandan society if 2020 middle income status and Vision 2040 are to be achieved”, he said.
