Both the grant element of new external borrowing and grant equivalent financing as a percentage of GDP are projected to fall as oil production commences in the medium term and the country progresses towards middle income status where it will have less access to concessional loans.
Bank of Uganda’s Executive Director for Research, Dr Adam Mugume says if the 2021/2022 budget proposals are passed, the total outstanding debt of the country will rise to Shs86.9 trillion, which will be 52% of the GDP.
In the report, the Central Bank indicates that Uganda’s public debt stock will grow from current USD 10.74 billion (39 trillion Shillings) to USD 13.4 billion Shillings (49 trillion Shillings) in the 2019/20 financial year. This translates into a rise from 42.2 per cent to 45.7 per cent of GDP in 2019/20.
