(Kampala) – Uganda’s fiscal plans for 2024/25 have raised concerns after political activist Dr. Kizza Besigye questioned the government’s ability to fund its commitments without taking on additional debt. State Minister for Finance Henry Musasizi recently stated that the government will not need to borrow to pay public sector salaries. Besigye, however, doubts this claim, pointing to significant debt obligations in the national budget that may require further borrowing.
According to Minister Musasizi, Uganda’s tax revenue target for the fiscal year is set at 32 trillion Ugandan shillings, a target many economists consider ambitious. With a large portion of Uganda’s budget allocated to repaying existing loans, Besigye suggests the government’s planned expenditures may be unsustainable without further debt.
Besigye emphasized that the national budget is a public document accessible to all Ugandans. He highlighted that Uganda’s debt servicing requirements amount to 34.6 trillion Ugandan shillings, surpassing the projected tax revenue. In his statement, Besigye argued that meeting these debt obligations alone could require additional borrowing, raising questions about the government’s ability to fund other essential expenditures, including salaries.
Projected Budget and Debt Service Figures (FY 2024/25):
| Budget Element | Amount (UGX) |
|---|---|
| Tax Revenue Target | 32 trillion |
| Debt Repayment & Interest | 34.6 trillion |
| Additional Borrowing Required | Undisclosed |
Besigye urged government officials, particularly Minister Musasizi, to provide clarity on how the budget’s overall expenditures would be funded without relying on more debt. According to Besigye, achieving the high tax revenue target will be challenging, given current economic conditions. If tax revenue falls short, he suggested, the government may have little choice but to borrow further to fulfill its financial obligations.
