The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | JULIUS BUSINGE | Government is working on a strategy to curtail accumulation of domestic arrears, according to Kenneth Mugambe, the director for budget at the Ministry of Finance Planning and Economic Development.
Mugambe, who was responding to budget related questions from Civil Society Budget Advocacy Group (CSBAG) at the Ministry’s headquarters on April 13 said the strategy is still in the armpits of the ministry but will be out for public consumption when it is done.
He did not state the exact date for its completion.
However, he urged CSOs to submit their proposals so they are considered before the final copy is completed.
This development comes at a time the private sector continues to demand over Shs 2.7 trillion as arrears from government, which has accumulated in the last three financial years.
Mugambe said, in the current FY2017/2018, they provided for Shs 300bn to clear part of the outstanding arrears. He did not say how much of this amount has been cleared so far. However, he said, they will provide for the same amount in the coming FY2018/19 budget.
“We want to prioritize the private sector members who have supplied government,” Mugambe, who was flanked by other senior ministry officials, said. He said the amount targets players in utilities, pension, court awards and veterans that are under the ministry of defense.
Meanwhile, officials said that public debt as at June 2016/2017 was recorded at 37% of Uganda’s GDP while present value of debt to GDP was 27.1%, which is far lower than the internationally recommended 50%.
Julius Mukunda, the national coordinator of CSBAG urged government not to just talk but to include these arrears in the coming budget as a measure of supporting private sector activities.
