Uganda on Thursday presented the 2021/22 financial year budget estimates prioritizing security, human resource development and transport infrastructure development.
Amos Lugoloobi, designate minister of state for finance in charge of planning while presenting the budget before parliament said the total budget estimates amount to 44.7 trillion shillings (about 12.8 billion U.S. dollars).
Human resource capital development took the largest share of 7.7 trillion shillings, followed by peace and security with 6.9 trillion shillings.
Transport infrastructure development took 5.1 trillion shillings while the agriculture sector took 1.67 trillion shillings.
Energy infrastructure development took 1.1 trillion shillings while access to justice was given 376.9 billion shillings, and information communication technology took 134.9 billion shillings.
According to Lugoloobi, the budget will be financed by domestic and external sources. Out of the 44.7 trillion shillings, about 22.4 trillion shillings will be from domestic revenue.
The minister said during the 2021/22 financial year, which starts on July 1, the government will ensure to keep the debt within sustainable levels.
“Uganda public debt remains sustainable in the short, medium and long term. I reaffirm government’s unwavering commitment that Uganda shall continue to honor its debt obligations as they fall due,” he said.
“Uganda will not default on repayment of its debt. All contractual debt obligations will be fully honored,” he added.
Ministry of Finance figures show that the country’s debt amounted to 17.96 billion dollars by the end of December 2020, which is equivalent to 49.8 percent of GDP. Experts say if a country’s ratio to GDP is above 50 percent, then it faces debt distress.
The funds were used to finance mainly infrastructure projects such as the Karuma and Isimba hydropower plants, oil roads, development of airports industrial parks, transmission lines, water and irrigation projects. Enditem