The Auditor General, Edward Akol, has revealed that the government owes a staggering Shs11.121 trillion in unpaid invoices for works and services supplied by various individuals and institutions.
This alarming figure highlights significant deficiencies in the government’s financial management and fiscal discipline.
According to Akol’s report, Treasury Operations accounts for the largest share of the debt, with Shs8.313 trillion in unpaid obligations.
Ministries, Departments, and Agencies (MDAs), alongside Local Governments, collectively owe Shs2.808 trillion.
Akol warned that the financial strain from these arrears has far-reaching implications, including penalties levied by the Bank of Uganda for delayed payments.
Additionally, the rising domestic arrears exacerbate economic pressures and erode public confidence in government institutions.
“This growing debt burden threatens not only fiscal stability but also public trust in the government’s ability to fulfill its obligations,” Akol noted in his report.
The accumulation of arrears has drawn criticism from stakeholders, who are urging the government to adopt urgent measures to streamline payment processes and mitigate further penalties.
Delayed payments, they argue, disrupt service delivery, strain suppliers, and hinder economic growth.
The Auditor General emphasized the importance of enhancing financial accountability and instituting timely payment mechanisms to avert a deeper financial crisis.
As the government faces scrutiny over its financial practices, the call for fiscal reforms and better management of public resources grows louder.