FDC warns govt on reckless borrowing

The Opposition Forum for Democratic Change (FDC) party has warned the government against what it described as reckless external borrowing that has left the country highly indebted.

Party spokesperson Ibrahim Ssemujju Nganda said the ruling government’s continuous borrowing to fund non-essential things has disabled the country’s development.

Mr Ssemujju said the country’s debt now stands at Shs79.9 trillion, which is 49 percent of the GDP. According to the Bank of Uganda Monetary Policy report for December, Uganda’s public debt stood at Shs78.89 trillion, as of June 2022, of which Shs48.21 trillion is external debt, and Shs30.661 trillion is domestic debt.

Mr Ssemujju said FDC is concerned that 35 percent of the Shs49.9 trillion draft budget framework for 2023/24 financial year is for debt and interest payment.

“Debt payment, including interest camouflaged by the ministry of Finance as treasury operations, has increased from Shs15.1 trillion to Shs17.5 trillion, which means that 35 percent of the next financial year’s budget is debt and interest payment,’’ he told journalists at FDC headquarters in Najjanankumbi in Kampala yesterday.

He added: “While the stated objective in the draft budget framework paper that is under consideration by Parliament is to increase average household income and improve quality of life, the real and hidden objective of it is to finance the extravagant life of Mr Museveni and his family and for him to access money to continue renting political support,” Mr Ssemujju said.

He warned international institutions to stop lending money to the Ugandan government.
“We intend to make it formal; write to all lending institutions not to lend Mr Museveni and his minister’s money. We are going to issue a red alert to them that if you see Mr Museveni, his minister or his agent, please, don’t lend them money,” Mr Ssemujju said.

Mr Ssemujju noted that Uganda is capable of reducing its debt burden if the government restructures its budget to reduce spending and set priorities.

He said this can be done by reducing the number of districts, the size of Parliament, Cabinet, Resident District Commissioners, presidential advisers, and State House employees, among others.