Uganda’s public debt in Manageable Range-Government
The State Minister for finance, David Bahati, has said that Uganda’s public debt is in manageable range.
Bahati noted that whereas Uganda’s debt has reached a debt to GDP ratio of 49%, Uganda is still better than may countries, such as Kenya, whose debt to GDP ratio has reached 60%.
Countries are advised not to have a debt to GDP ratio exceeding 50%. Beyond that, it becomes difficult for a country to pay back the loans.
On concerns about the high rate of borrowing, the state minister said it is justifiable since the Government is mostly borrowing for infrastructure projects, which will spur economic growth.
Bahati also noted that Uganda is one of the few economically progressive economies, whose debt to DGP ratio is still below 50% and that it is one of the few countries in the world that are experiencing a positive economic growth.