https://en.sputniknews.africa/20240205/ugandan-finance-minister-says-he-cant-borrow-indefinitely-to-mortgage-country-1064941946.html
Ugandan Finance Minister Says He 'Can't Borrow Indefinitely to Mortgage' Country
Ugandan Finance Minister Says He 'Can't Borrow Indefinitely to Mortgage' Country
Sputnik Africa
Earlier, Ugandan President Yoweri Museveni has asked parliamentarians to approve the merger of more than 30 government agencies, claiming that the move will... 05.02.2024, Sputnik Africa
2024-02-05T17:38+0100
2024-02-05T17:38+0100
2024-02-05T18:05+0100
uganda
sub-saharan africa
east africa
economy
finance minister
yoweri museveni
debt
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Matia Kasaija, the Finance Minister of Uganda, said that he cannot borrow indefinitely to "mortgage the country" by financing endless financial requests, many of which may be deferred or even canceled, the local media reported on Monday.Kasaija spoke at a pre-budget dialogue for the 2024/25 financial year organized by Civil Society Budget Advocacy Group over the weekend and responded to concerns that the increasing public debt threatens the economy, which continues to have low tax receipts, and at the same time, a surge in financing needs, many of which fall within priority areas but cannot be addressed, the report said.Even though the government has often pledged to eliminate supplementary requests from the budget cycle as they lead to increased borrowing and thus bigger public debt, such requests have been a constant in the previous decade, according to the media.Uganda’s public debt stock increased from $19.54 billion in the financial year of 2020/21 to $20.99 billion in 2021/22, according to the Finance Ministry's report. This, however, "represents a much smaller increase in public debt compared to the previous two financial years."Lastly, the minister urged to prioritize certain sectors of the economy, since there'll "never be enough" money for every sector.For the 2024–25 fiscal year, the government had earlier designated several sectors as priority areas, which include investments in human capital, infrastructure, security and peace, electricity generation and transmission, and effective natural disaster management.The finance minister, however, is not the only one calling for changes in government and better financial management. Ugandan President Yoweri Museveni has asked members of parliament to endorse the merging of more than 30 government organizations, claiming that the strategic move will result in huge savings of at least Shs1 trillion (around $262 million) each year for the country, local media reported.If implemented, the proposed rationalization process will result in the integration of 33 agencies into their parent ministries, the consolidation and merger of 35 agencies into 19 entities, and the retention of 80 agencies' semi-autonomous status, according to the media.
https://en.sputniknews.africa/20240204/ugandas-leader-advocates-cost-effective-merger-of-government-agencies-1064922555.html
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uganda, east africa, economy, finance minister, yoweri museveni, debt
uganda, east africa, economy, finance minister, yoweri museveni, debt
Ugandan Finance Minister Says He 'Can't Borrow Indefinitely to Mortgage' Country
17:38 05.02.2024 (Updated: 18:05 05.02.2024) Earlier, Ugandan President Yoweri Museveni has asked parliamentarians to approve the merger of more than 30 government agencies, claiming that the move will save the country at least about $262 million annually.
Matia Kasaija, the Finance Minister of
Uganda, said that he cannot borrow indefinitely to "mortgage the country" by financing endless financial requests, many of which may be deferred or even canceled, the local media reported on Monday.
“Almost every Monday when Cabinet sits, there are always new demands for supplementary budget. Now, I have learned to politely keep quiet. Even when the President says ‘Kasaija, find money for this’ […] I say ‘yes’, but I don’t do anything because there is no money and I will not borrow indefinitely,” he said, as cited by the media, making it clear that the issue of supplementary requests must be stopped.
Kasaija spoke at a pre-budget dialogue for the 2024/25 financial year organized by Civil Society Budget Advocacy Group over the weekend and responded to concerns that the increasing public debt threatens the economy, which continues to have low
tax receipts, and at the same time, a surge in financing needs, many of which fall within priority areas but cannot be addressed, the report said.
Even though the government has often pledged to eliminate supplementary requests from the
budget cycle as they lead to increased borrowing and thus bigger public debt, such requests have been a constant in the previous decade, according to the media.
Uganda’s public debt stock increased from $19.54 billion in the financial year of 2020/21 to $20.99 billion in 2021/22, according to the Finance Ministry's
report. This, however, "represents a much smaller increase in public debt compared to the previous two financial years."
Lastly, the minister urged to prioritize certain sectors of the economy, since there'll "never be enough" money for every sector.
“Money will never be enough, even if you give me another Shs50 trillion [around $13 billion] [...] but we can prioritize sectors, according to their weight,” he said.
For the 2024–25 fiscal year, the government had earlier designated several sectors as priority areas, which include investments in human capital, infrastructure, security and peace, electricity generation and transmission, and effective natural disaster management.
The finance minister, however, is not the only one calling for changes in government and better financial management. Ugandan President
Yoweri Museveni has asked members of parliament to endorse the merging of more than 30 government organizations, claiming that the strategic move will result in huge savings of at least Shs1 trillion (around $262 million) each year for the country, local media reported.
If implemented, the proposed rationalization process will result in the integration of 33 agencies into their parent ministries, the consolidation and merger of 35 agencies into 19 entities, and the retention of 80 agencies' semi-autonomous status, according to the media.
