Finance and Economic Planning Minister Matia Kasaija presented his eighth budget on Thursday, projecting a positive economic outlook and receiving commendation from President Museveni for his meticulous preparation.
Despite criticism of the economy and concerns over Uganda’s debt, Minister Kasaija assured that the debt remains sustainable. As of December 2023, Uganda’s total public debt stood at Shs93.38 trillion, with Shs55.37 trillion in external debt and Shs38.01 trillion in domestic debt. The public debt is projected to reach Shs97.638 trillion by June 30, 2024.
Minister Kasaija emphasized that the borrowed funds have been well-invested, yielding positive returns. Highlighting key investments, he noted that 29 percent of the borrowed money has improved transport infrastructure, including oil roads, tourism roads, the Kampala-Entebbe Expressway, the Kampala Flyover, and various tarmacked roads. Additionally, funds have been allocated for upgrading Entebbe International Airport, constructing Kabalega International Airport, and rehabilitating the Metre Gauge Railway.
President Museveni echoed Kasaija’s points, addressing media criticism and reinforcing the government’s strategy on borrowing. Museveni stated that Uganda’s public debt to GDP, estimated at 46.9 percent in June 2023 and projected to be 47.9 percent by June 2024, remains below the Charter for Fiscal Responsibility’s threshold of 52.4 percent and the government’s policy target of 50 percent for debt sustainability.
Kasaija reported that the economy has recovered from recent shocks and is positioned for accelerated growth, driven by value addition to agricultural products, natural resources, industrial growth, tourism, and scientific innovation. He urged Ugandans in the subsistence economy to leverage the Parish Development Model and other wealth creation funds to transition into the money economy across sectors like commercial agriculture, industry, services, and ICT.
Addressing the youth, Uganda’s largest demographic, Kasaija highlighted opportunities for skill acquisition, access to finance, innovation, and product development. He assured support for the creative industry, aiming to reduce unemployment and prevent exploitation.
For FY 2024/2025, the government’s total expenditure is projected at Shs72 trillion, with Shs37.56 trillion for total appropriation and Shs34.756 trillion for statutory expenditure. Wages and salaries are estimated at Shs7.926 trillion, non-wage recurrent expenditure at Shs17.454 trillion, development expenditure from own resources at Shs6.152 trillion, external project financing at Shs9.584 trillion, appropriation in aid at Shs293.9 billion, and external debt repayment at Shs3.149 trillion.
