The Uganda Debt Network has asked the government to scale down further on overall budget needs by leveraging on domestic resources including the recovery of stolen resources if it is to avoid falling in more debts.
The call comes as statistics show that Uganda’s public debt has risen to Shs46 trillion shillings as of June 2019 up from Shs41 trillion the previous year.
The rise in debt is reflected in the Budget Framework Paper for the year 2020/21 with Shs30 trillion being external debt while about Shs15.5 trillion is domestic debt.
The network’s program coordinator Julius Kapwepwe tells KFM that by utilizing domestic resources like local revenue collection, the government will lessen foreign borrowing further calling for a stop on wasteful expenditure on the expense of taxpayers.
The minister of Finance Matia Kasaija has since revealed that the government is considering undertaking soft debt approaches such as prioritizing concessional debt to minimize debt service costs.