In a startling revelation, Uganda’s financial obligations have escalated to a staggering 10.818 trillion shillings, underscoring a deepening fiscal crisis. This vast sum represents the government’s outstanding payments owed to various entities and individuals, encompassing goods and services, fines, penalties, and taxes.
The financial breakdown for the fiscal year 2022/2023 reveals a concerning 316 billion shillings in pension arrears, highlighting the government’s struggle to meet its commitments. This surge in domestic arrears has sparked a debate among experts and politicians over the true scale of Uganda’s debt, which, they argue, significantly exceeds the oft-cited 50 percent of GDP when these unpaid amounts are considered.
The Auditor General’s assessment of Uganda’s debt stands at an alarming 96 trillion shillings, in contrast to the 86 trillion shillings reported by the Ministry of Finance, Planning and Economic Development for the same period. A closer look at the arrears distribution reveals that the central government’s ministries alone are responsible for 3.1 trillion shillings in unpaid dues for goods and services, including 270 billion in pension arrears.
Government agencies, commissions, and authorities constitute a substantial portion of the arrears, amounting to 7.53 trillion shillings. Notably, Treasury Operations, a key agency under the ministry managing government debt, investments, and the Contingency Fund, accounts for 6.14 trillion shillings of this total, with the Uganda National Roads Authority owing another 622 billion shillings.
The Ministry of Finance leads in arrears with 888.3 billion shillings, primarily in taxes, deductions, and contributions to international agencies, followed by the Ministry of Justice and Constitutional Affairs at 740.1 billion shillings, largely due to court awards and compensations.
A significant portion of the arrears, totaling 5.24 trillion shillings and categorized under “Others”, remains unspecified, but is attributed to Treasury Operations. Court awards and compensations follow with 2.015 trillion shillings, and the arrears for goods and services to various ministries and agencies stand at 1.06 trillion shillings, with land acquisitions close behind at 1.05 trillion.
As the fiscal year closed, the government’s debt extended to 21.1 billion shillings in rent for housing its various installations, with agencies contributing 18.6 billion shillings to this total. Additionally, the government’s international obligations exceeded 137 billion shillings in memberships and contributions, alongside 851 billion shillings in taxes and other deductions.
This financial quagmire poses significant challenges for Uganda, necessitating urgent and strategic measures to mitigate the escalating debt crisis and ensure fiscal sustainability.
