Debt repayment consumes half of Uganda’s Budget, Limiting key Service- EOC

By Muhamadi Matovu | Wednesday, March 19, 2025
Debt repayment consumes half of Uganda’s Budget, Limiting key Service- EOC

The Equal Opportunities Commission (EOC) has expressed concerns over poor resource allocation and governance inefficiencies that hinder service delivery across Uganda.

During a meeting with the Parliamentary Committee on Gender, Labour, and Social Development, EOC Chairperson Safia Nalule Jjuuko highlighted that nearly half of the national budget is allocated to debt repayment, limiting investments in critical sectors such as education and healthcare.

"Out of the Shs 72 trillion annual budget, Shs 34 trillion is spent on debt repayment, affecting the government's ability to fund essential services," Jjuuko noted.

In its annual Debt Sustainability Report FY2023/24, released on February 7, 2024, the Ministry of Finance, Planning and Economic Development reported that Uganda's total public debt increased from $23.66 billion (Shs86.779 trillion) in FY 2022/23 to $25.59 billion (Shs94.869 trillion) in financial year 2023/24.

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News Debt repayment consumes half of Uganda’s Budget Limiting key Service- EOC

Jjuuko urged the government to establish a national think tank to address pressing socio-economic challenges, including youth unemployment, service delivery inefficiencies, and regional inequalities.

Jjuuko emphasized the need for collaboration, pointing out that underreporting of youth unemployment and lack of government accountability in implementing affirmative action policies remain significant concerns.

"We are not blaming anyone, but we all share responsibility as leaders. The annual reports on equal opportunities rarely reach Parliament, yet they highlight critical issues affecting Ugandans," she stated.

She also cited disparities in healthcare, education, and infrastructure due to poor resource allocation, along with weak institutional capacity and poor coordination among government agencies.

Delays in fund releases, recruitment bans, and procurement inefficiencies, she added, continue to hinder service delivery.

Jjuuko criticised the trend of recentralization, arguing that it undermines local governments' ability to implement development programs effectively.

She also pointed to corruption as a major setback, noting that misappropriation of public funds has resulted in substandard infrastructure projects and eroded public trust in government institutions.

"The creation of too many local government units has burdened service delivery rather than improving governance. Many newly created cities and districts lack the necessary infrastructure, staffing, and resources to function effectively," she added.

To address these challenges, Jjuuko called for an increase in the EOC’s budget from Shs 20 billion to Shs 38 billion to enhance its capacity to implement equity-focused programs. She urged Parliament to advocate for fair resource allocation and ensure government institutions prioritize inclusive policies.

"By fostering collaboration, accountability, and commitment to national priorities, we can drive meaningful change and ensure socio-economic transformation for all Ugandans," she said.

Kassanda South MP and Shadow Minister for Youth and Children Affairs, Frank Kabuye, echoed concerns over corruption, calling it a major obstacle to service delivery in Uganda.

Speaking after a meeting with the EOC, Kabuye attributed the lack of access to essential services such as education, healthcare, electricity, and infrastructure to corruption and mismanagement of public funds.

"We have repeatedly spoken out against corruption and urged the government to take action, but little has been done. Our people continue to suffer due to the lack of schools, hospitals, and electricity because funds meant for these services are embezzled," he said.

He also criticized institutions like the Human Rights Commission for losing focus in advocating for Ugandans' rights and called for the immediate release of political detainees still held in military courts, despite a Supreme Court ruling barring civilian trials in court martials.

Kabuye reaffirmed his support for the EOC’s efforts in tackling inequalities related to gender discrimination, tribalism, and political bias. However, he stressed the need for transparency and accountability in budget allocations.

"We shall analyze the commission’s budget requests to ensure that any increment has a tangible impact on the people," he noted.

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