Uganda’s public debt rises to Shs106 trillion

Uganda’s public debt has now reached Shs106 trillion, the Ministry of Finance has said.

The ministry’s quarterly debt statistical bulletin released in Kampala on Tuesday showed that public debt has over the past year, grown by nine percent (by Shs9 trillion).

Last year the public debt stood at $26.56 billion, which was equivalent to Shs96.6 trillion.

The ministry attributed this substantial growth in the public debt to increased domestic borrowing in the past year.

“Breaking down the debt stock, the ministry said external debt totalled $14.60 billion (Shs53.75 trillion), while domestic debt was $14.46 billion (53.22 trillion).

“The significant rise in the domestic debt is on account of the government’s decision to clear all outstanding obligations to the Bank of Uganda as at the end of June 2024 through the issuance of a treasury bond and increased domestic borrowing to fund the budget deficit for the FY 2024/25,” the ministry reasoned.

On the other hand, the ministry explained that the external debt stock decreased from $14.91 billion as of September 2024 to $14.60 billion by December 2024.

The decrease in external debt was primarily attributed to principal payments amounting to $148.8 million, along with the contribution from the exchange rate and other variations totalling to $391.3 million.

Acting director, of debt and cash policy, Ms Maris Wanyera said in line with international best practices, the ministry on a quarterly basis compiles and publishes the public debt statistics.

“We disseminate public debt statistics that are parameters of external and domestic debt to policymakers, the general public, government officials, and international organizations. Investors in debt securities and other stakeholders for research and informed decision making,” she said.

Explaining the reasons why the publication of the public debt figures is important, Ms Wanyera said the same is to provide accurate comprehensive consistent dependable timely, and internationally comparable debt statistics.

The other purpose is to assess the debt status of the country, enhance policy-making transparency and accountability, and effective debt management for sustainable economic growth.