Government treats symptoms, not disease of debt

Finance Minister Matia Kasaija displays the Budget briefcase in June last year. PHOTO/Alex Esagala

What you need to know:

Debt weary. Economists project that Uganda’s growing financing needs will push the government to borrow up to Shs8.5 trillion to refinance domestic debt in the next financial year starting July1. Uganda’s expansionary budget that accommodates debt refinancing shows that government has failed to tighten the noose around its growing financing expensiture amidst dwindling revenue.

With little leg room to manoeuvre from the self-inflicted debt trap, government has decided to incur a debt to pay off a debt, attracting condemnation from several seasoned finance professionals and economists.

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