Uganda’s Revenue Collection too Low to Pay Debts
Uganda’s revenue collection is too low to pay its financial debts a situation that will see the government borrow to bridge the gap.
The budget committee chairperson Patrick Isiagi Opolot said in a budget draft report presented to parliament recently.
Out of the Sh45.6 trillion draft budgets for the next financial year, a total of sh15.7 trillion, which counts for 34.3% of the National budget, will go to debt repayment.
And out of the total National budget of sh.45.6 trillion, sh21.9 trillion is expected to come from domestic revenue collections while the remaining balance will come from external and internal borrowing.
Parlianment also raised an issue on arrears which is Sh2.148trillion yet in the draft budget Sh 400b
As part of its key proposals on the Budget Framework paper (draft National budget) for the 2021-2022 financial year, Parliament asked to increase the budget for clearing domestic arrears as part of the interventions required to salvage the economy.
Parliament’s committee argued that given the economic circumstances and total amount of all the arrears is necessary that more money be allocated to clear domestic arrears before the Government finalises the budget.