The Deputy Secretary to Treasury says a lot of money is being allocated to debt servicing with little remaining to finance growth. He says there is an urgent need to reform the international finance architecture.
In the framework paper, the Finance Minister sets a new tax revenue target of Shillings 21.54 trillion up from Shillings 20.4 trillion in the current financial year to enable financing of the 2020/2021 budget.
In its latest economic outlook report for Uganda after the executive consultations on the country, the IMF says: “One shilling paid for debt service is one shilling less going to a school or a health clinic. The current ratio of interest payments to revenue is comparable to what countries with high risk or in debt distress typically face.”
