In the recent statistics, Uganda’s total public debt has hit a record Shs65.82 trillion as of December 2020, up from Shs49 trillion in 2019, with a Shs16.82 trillion increment due to increased government borrowing.
The public Debt is ordinary indicated by the percentage of “Gross Domestic Product” (GDP), which measures the capacity of the economy to support such borrowing. This is particularly useful in comparing debt levels over time and among countries of different sizes.
This translated in a format that the estimated 43 million population of Ugandans, each one owes lenders Shs1.5 million.
Mr Ziwa Moses, the acting commissioner of the debt policy and insurance at the ministry of finance said “In regard to that, the nominal debt to GDP as at December 2020, stood at 47.2 per cent, compared to 38 per cent as of December 2019 and at 42 per cent as of June 2020. So public debt is projected to rise to 51.9 per cent of the GDP in the Financial Year 2021/2022, because government will borrow to finance those key infrastructural projects, especially of transport, oil and gas sectors,” Mr Zziwa said.
He also added “A lot of debt has gone into energy, works and water sectors. There are also flagship projects including Karuma Hydro Project, Isimba Dam, Kabaale International airport, expansion of Entebbe International airport and irrigation schemes among others,”.
This leaves a very big fundamental distinction between The public and the government that borrows money, however more financial sensation needs to be established towards Ugandans. On the contrary the finance minister Matia kasaijya has received alot of critism for his negative financial reports.