The opposition Forum for Democratic Change party (FDC) has expressed concern over what they call “economy in distress” characterised by endless borrowing and sharp increase of the both domestic and external debt.
The FDC spokesperson who doubles as Kira municipality legislator Ibrahim Semujju Nganda noted on Monday that while the Budget framework paper presented in parliament last month shows that Uganda’s budget has dropped from 40.4 trillion in 2019/20 financial year to 39.6 Trillion, the national debt has jumped to Shs 46trillion.
“Of the 39.6 trillion budget, 7.3 Trillion will be used to repay loans we have obtained from mainly commercial banks and we will borrow 6.6 trillion shillings more to repay external loans,” he noted.
“Most important for you to note is that we will be paying interest during the New year of up to 3.5 trillion on the money borrowed locally and externally. Our country’s total debt now stands at 46.36 trillion shillings.”
“We must do something to stop Mr Museveni from further mortgaging our country through reckless borrowing,” Semujju added.
The FDC mouthpiece noted that the borrowed money is what “Mr Museveni extravagantly use to finance his insatiable appetite for power.”
He noted for instance that every public outreach he (Museveni) takes, costs the country 2.4 billion shillings daily.