President Yoweri Kaguta Museveni said Thursday June 15, 2023 that he has taken over the final approval of loans to limit debt.
The president revealed that he was opposed to the endless loans being acquired from both domestic and external lenders as some of the loans are unnecessary.
Delivering his 2023/2024 budget speech, President Museveni said the appetite for borrowing is a sign of indiscipline in government spending.
Museveni who addressed parliament virtually from State House Nakasero revealed that he has personally taken over the role of final approval for external loans.
Constitutionally ,the President is in charge the finance ministry though he delegates it to the Finance Minister and state ministers.
About 17 percent of the 52 trillion budget, will go to debt servicing.
By the end of the year 2022, the country’s indebtedness was 80.2 trillion shillings, according to the Ministry of Finance, Planning and Economic Development, but the Speaker of Parliament Anita Among says the record they have is 80.8 trillion.
President Museveni also accused the Uganda Revenue Authority, URA, of not doing enough to raise domestic revenues which would reduce the need for borrowing. URA has been a target of collecting 29 trillion shillings, which is more than 4 trillion above this year’s target, which is also not certain of being achieved.
President Museveni said the 13 percent GDP ratio is too low and URA is under-performing but has hope that this will improve.
