The Ministry of Finance to Parliament’s Budget Committee have unveiled a significant drop in Uganda’s borrowing.
The figures indicate that the country’s reliance on external assistance is set to plummet from Shs2.781 trillion in the fiscal year 2023/24 to a meagre Shs28.94 billion in the upcoming budget for 2024/25.
According to the submitted documents, the reduction in donor funding is attributed to various factors, including desire to slash borrowing, changes in donor priorities, global economic shifts, and evolving geopolitical dynamics. The Finance Ministry emphasized the need for strategic planning and financial prudence to mitigate the potential impact on essential public services.
In response to the impending challenge, government officials are now faced with the daunting task of reassessing budgetary allocations and identifying alternative sources of revenue. Experts suggest that this abrupt reduction in external assistance necessitates a comprehensive review of fiscal policies to ensure the country’s economic stability and sustained development.
Parliament’s Budget Committee is expected to engage in intense deliberations to address the implications of this significant decrease in donor support. Members of the committee have expressed their concerns about the potential strain on the national budget and are keen on exploring innovative strategies to bridge the financial gap.
The news has sparked discussions among citizens, civil society organizations, and policymakers, with many calling for increased domestic revenue mobilization and the implementation of economic reforms to foster self-reliance.
As Uganda navigates through these challenging financial circumstances, the government faces a crucial test in steering the nation toward economic resilience and sustainable development, balancing the need for fiscal responsibility with the imperative to meet the essential needs of its citizens.
