Gov't stops importation of vehicles for officials as public debt approaches Shs 90Trillion

An exception will be made only for importation of ambulances, medical supplies or distribution, agricultural extension services, security and revenue mobilization.

This was revealed by Finance Minister Matia Kasaija while delivering the national budget for FY 2023/24 at the Kololo Independence Grounds on Thursday, June 15th.

“In order to live within our means, we have reduced consumption expenditure,” announced the minister.

“During the next financial year, there will be no purchase of new vehicles for political leaders and public officers except for hospital ambulances, medical supplies or distribution, agricultural extension services, security and revenue mobilization.”

Kasaija also announced that travel abroad has been restricted to statutory functions and for critical legal and resource mobilization functions. We will also regulate expenses on workshops and seminars.

In the budget speech, it was revealed that Uganda’s budget stock had burgeoned to  an estimated Shs. 88.9 trillion, equivalent to US$ 23.7 billion as of 30th June 2023. 

“Of this amount, external debt was Shs 47.9 trillion equivalent to US$ 12.9 billion while domestic debt was Shs 33.0 trillion equivalent to US$ 8.9 billion,” said the minister.

Kasaija however, revealed that the debt to GDP is projected to drop to 48.2% this financial year ending June 2023 from 48.6% at the end of June 2022.

President Museveni in his speech, blamed the explosion of the national debt on “neo-colonial” civil servants.

This, he said, was the reason he recently decided to start approving all external debts himself.

“The loans were being pushed by the neo colonial civil servants until recently when I put down my foot and insisted on approving every loan. That is why you hear that the loans take time to approve,” he said.

The President emphasized that with discipline , Uganda can significantly cut on her debt or stop borrowing altogether.