On Tuesday, 09 January 2024, Speaker of Parliament Anita Among reiterated Parliament’s dedication to curbing public borrowing during the reception of the Annual Report of the Auditor General on the Public Accounts for the Financial Year ended 30th June 2023. The report, presented by Auditor General John Muwanga, served as a critical point of reference for addressing concerns related to the escalating public debt.
Among emphasized the significance of regular value-for-money audits, underlining their role in enhancing public accountability and minimizing unnecessary borrowing. She affirmed Parliament’s commitment to scrutinizing the Auditor General’s reports meticulously, especially concerning investments such as the Parish Development Model (PDM) and institutional shares.
“Investing in the Parish Development Model and purchasing shares in institutions requires a thorough examination of our financial standing and performance. Conducting these audits is crucial to ensuring fiscal responsibility and reducing our reliance on borrowing,” Among asserted.
The Auditor General’s report for the fiscal year 2022/2023 highlighted that the total public debt as of 30th June 2023 amounted to Shs96.16 trillion. This comprised Shs43.69 trillion in domestic debt and Shs52.472 trillion in external debt, revealing a consistent increase of 107 percent over the past five years.
Edward Akol, the Assistant Auditor General overseeing audits, pointed out, “The public debt is growing at a higher rate than GDP, indicating a cause for concern.”
The surge in public debt was attributed to increased government expenditure exceeding domestic revenue, leading to a fiscal deficit. The Auditor General’s report also unveiled issues such as the existence of ghost employees in the public service and non-existent projects in PDM enterprises.
The aftermath of the 2023 validation exercise for government employees exposed losses of Shs6.72 billion, paid to 1,818 ghost employees. Furthermore, 604 beneficiaries in 242 PDM SACCOs across 68 Local Governments had implemented ineligible projects. In 20 Local Governments, 53 beneficiaries in 44 PDM SACCOs had non-existent projects, contributing to the financial challenges faced.
Despite these challenges, Speaker Among commended the Auditor General for consistently and promptly executing the mandate prescribed in Article 163 (3) of the Constitution. She highlighted Parliament’s commitment to actively participating in the Public Finance and Accountability cycle, aiming to enhance transparency and accountability in managing public resources.
“As Parliament, we are committed to effectively playing our role in the Public Finance and Accountability cycle. This report marks the beginning of public scrutiny, which I will undertake within six months under Article 163,” added Among.
As part of the annual tradition, Parliament receives the Auditor General’s report every January, containing vital audit findings on government consolidated financial statements and the financial performance of public corporations and state enterprises. The report serves as a cornerstone for evaluating and addressing fiscal concerns in the nation.
