The government of Uganda is facing a significant financial challenge, accumulating unpaid amounts totaling up to 10.818 trillion shillings. This includes outstanding payments for goods and services, fines, penalties, and taxes. The updated audited arrears schedule for the financial year 2022/2023 reveals that approximately 316 billion shillings are in pension arrears.
One of the major concerns regarding Uganda’s total indebtedness is the issue of domestic arrears, which experts and politicians argue are often not adequately considered in assessing the country’s debt level. While the Auditor General’s report estimates the country’s debt at 96 trillion shillings, the Ministry of Finance, Planning, and Economic Development reported a slightly lower figure of 86 trillion as of the end of 2022/2023.
The bulk of the arrears, totaling 3.1 trillion shillings, are attributed to goods and services supplied to the central government’s ministries. This amount includes pension arrears of about 270 billion shillings. Government agencies, commissions, and authorities contribute significantly to the arrears, amounting to 7.53 trillion shillings. Treasury Operations, responsible for government debt management, holds 6.14 trillion, and the Uganda National Roads Authority owes 622 billion shillings.
Within the ministries, the Finance ministry tops the list with 888.3 billion shillings, mainly in taxes, other deductions, and contributions to international agencies. Justice and Constitutional Affairs follow closely with 740.1 billion shillings, attributed entirely to court awards and compensations.
Under Treasury Operations, the arrears include 1.1 trillion shillings in court awards and compensations, and under the category of ‘others,’ the agency faces indebtedness amounting to 5 trillion shillings. The largest single source of arrears comes from the vague category of “Others,” totaling 5.24 trillion shillings, primarily from unpaid sums by “Treasury Operations.”
By the end of the year, the government owed 21.1 billion shillings in rent for housing various installations, with agencies accounting for 18.6 billion shillings. Additionally, international organizations are awaiting payment of more than 137 billion shillings in membership and other contributions, along with 851 billion shillings in taxes and other deductions.
