According to the latest report released by the Auditor General John Muwanga for the year ending December 2018, Uganda’s public debt has increased from Shs 33.99 trillion as at June 30, 2017, to Shs 41.51 trillion as at June 30, 2018.
The report revealed that Uganda’s public debt is getting out of hand. Addressing the press on Tuesday, the minister for Finance, Matia Kasaijja said Ugandans don’t have to worry about this report.
Adding that the public debt was sustainable and it would borrow with care in the future, dismissing concerns that growing indebtedness posed risks to the economy.
“The risk for government defaulting on debt repayment is non-existent,” Minister Kasaija told a said
The minister said Uganda’s Public debt is ‘sustainable, and is projected to remain sustainable in the medium to long term
He added: However, future borrowing would be done “cautiously and selectively” to avoid potential risks.
The minister also said that Uganda’s debt level ‘ ‘comfortably below the international sustainability thresholds which is below 50% debt to GDP ratio’’
Uganda’s debt to GDP ratio, he added, is significantly below that of the sub-Saharan average which is 45.4%.