Uganda’s Public Debt Soars to Alarming Levels, Raising Concerns Over Fiscal Management
Uganda’s public debt has reached an alarming Shs 92 trillion, sparking widespread concerns about the country’s fiscal management and the value for money on government projects. The Lord Mayor of Kampala, Erias Lukwago, has questioned the government’s decision to take on additional debt for infrastructure projects, citing a lack of transparency and accountability.
The proposed project in question involves securing a significant loan to fund the construction of just 72 kilometers of roads within the capital city, Kampala. Critics argue that the government’s borrowing spree has not translated into proportionate development on the ground, with many questioning the prioritization of projects and the transparency of the processes involved.
Uganda’s debt-to-GDP ratio has raised red flags among financial analysts, who warn that the country may be heading towards an unsustainable fiscal path. The government’s continued reliance on loans for infrastructure projects has been criticized for not delivering commensurate economic growth or improvement in the quality of life for ordinary Ugandans.
In response to the criticisms, government officials have defended the infrastructure projects, arguing that they are essential for stimulating economic growth, improving connectivity, and attracting foreign investment. However, the debate over Uganda’s public debt and infrastructure spending is likely to intensify as the government moves forward with its plans.
The challenge remains in balancing the need for development with responsible fiscal management to ensure that the country does not slip into a debt crisis. As Uganda continues to navigate its development trajectory, the call for transparency, accountability, and strategic planning in handling public finances grows louder. The country’s leadership faces the daunting task of ensuring that every borrowed shilling translates into tangible progress for the nation.
