Govt to borrow shs18 trillion

Business -->
Govt to borrow shs18 trillion
Caption not available

The Ministry of Finance has revealed plans to procure additional 29 loans, valued at over Shs18 trillion  in the near future to fund various public projects, amidst reports that Uganda’s public debt has grown to $24.60 billion (Shs93.38trillionn) as at end December 2023.

The details are contained in the report on public debt, grants, guarantees and other financial liabilities for financial year 2023/2024 that was released by Ministry Of Finance that highlighted several loans in the pipeline and the report will be laid before Parliament, by the Finance Minister in accordance with the Public Finance Management Act, (2015) Sections 39(4),42 (2-3) & 44(5).

Despite announcing the halting of funding projects in Uganda following the passing of the Anti-Homosexuality Act 2023, government  is still counting on the World Bank to finance the Northern Uganda Social Action Fund 4 (NUSAF-4) at US$250 million (Shs945.862 billion), and the project is expected to be overseen by Office of Prime Minister.

Government  is also waiting World Bank’s Board to approve Uganda’s Learning Acceleration Program (ULEARN) worth US$150 million (Shs 567.517Bn) that is meant to be undertaken by the Ministry of Education.

In the health sector, plans are underway to secure a loan worth Euro8.5 M (Shs34.955Bn) for the establishment of a regional oncology and diagnostic center in Mbale Institute from Australia, with the project set to be managed by Uganda Cancer Institute, while talks are ongoing to secure additional funding to finance the ongoing expansion of Uganda Cancer Institute Project worth US$14 million (Shs52.968Bn).

The Ministry of Health has planned to rehabilitate Bugiri Hospital at a cost of US$20 million (Shs75.669Bn) and discussions are said to be on-going with the financier who has been identified as BADEA.

Treasury however is positive that the debt is sustainable.

"When you see that huge shs72 trillion Budget, do not get worried, we may spend just about shs40trillion and we may rollover domestic debt. The Ugandan debt is sustainable and will always be sustainable," Permanent Secretary, Ramathan Ggoobi said.

Reader's Comments

RELATED ARTICLES

LATEST STORIES

Car bomb kills Somalis watching Euro football final
east-africa By Jacobs Seaman Odongo
9 hours ago
Car bomb kills Somalis watching Euro football final
'I was saved by luck or God,' Trump says
the-americas By NP admin
10 hours ago
'I was saved by luck or God,' Trump says
Dairy farmers tipped to always prepare for dry spells
agriculture By Ambrose Muhumuza
10 hours ago
Dairy farmers tipped to always prepare for dry spells
Body of missing Kamuli man found in a pit-latrine
top-stories By Hakim Kanyere
10 hours ago
Body of missing Kamuli man found in a pit-latrine