The increased borrowing by Government has triggered alarm among Civil Society Organisations under the umbrella of the Civil Society Budget Advocacy Group (CSBAG)
Julius Mukunda, the CSBAG Executive Director, told journalists Sunday evening that government had reached the extent borrowing to pay salaries.
Mukunda said that by the end of June 2018, Uganda’s total public debt – domestic and external – stood at 10.7bn dollars, equivalent to 41.5% of the GDP.
Whereas the total debt stock to GDP is still below the 50% regional threshold, he said, there were worries it could exceed the limit when government implements other debt financing projects such as the Standard Gauge Railway.
They also raised concerns over the very high and growing loan guarantees.
“A guarantee issued to the Islamic University in Uganda worth just under USD 14m led to an increase of the government’s guarantee portfolio from USD 40m in June 2017 to USD 55m by December,” Mukunda said.