Members of Parliament on the National Economy Committee have
reduced the 6.5 Trillion Shillings loan request meant for budget support.
The committee is finalizing its report on the proposal by Government to borrow
a total of 6.5 trillion shillings from the domestic market and the
International Monetary Fund -IMF to supplement the 45 trillion-shilling budget.
Although the money is meant for programs like support classified expenditure
for State House and Ministry of Defence, Uganda Development Bank, Ministry of Health,
Ministry of Trade and for recurrent domestic arrears, and for a bilateral
road infrastructure project between Uganda and the Democratic Republic of Congo
(DRC), Uganda Radio Network (URN) has learnt that this money has been slashed to
5.5 trillion shillings.
According to an MP on the committee who preferred anonymity, they have
considered only urgent and immediate needs and have slashed over 900 billion shillings
to reduce the debt burden. He said that hopefully, the unmet needs this time
will be worked on in the next financial year.
“The report is ready, and we have reduced the loan request by
close to 1 trillion, and now we will sit down together with the budget
committee, especially because what they requested is not what we have approved
before the matter can come to the house on Thursday,” the MP said.
Earlier last week while interacting with the Ministry of Finance
officials led by David Bahati, the Minister of State, Committee chairperson
Syda Bbumba asked the Minister to allow them to finance the projects in a
During the meeting, the MPs had proposed to review the financing for the DRC
road project from 200 billion shillings to 100 billion, while that of the radio
for learners would be reduced from 336 billion shillings to 168.
Charles Ilukor the Kumi County MP says that a reduction in the
loan request is the best thing to happen at the moment. He says several MPs
have questioned the different projects and items that the loans are financing.
He says the radio project, for instance, is not ready especially
on the side of the suppliers or manufacturers.
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It is not clear which other additional items or projects have been affected.