By Moses Kidandi
Finance minister Martia Kasaija has assured the public that the current public debt is sustainable had has no effect to the smooth running of the country.
This follows reports from the Auditor General that Uganda’s public debt had increased by a worrying 22 percent.
The Auditor General John Muwanga indicated that although Uganda’s debt to GDP ratio of 41 percent is still below the International Monetary Fund (IMF) risky threshold of 50 percent, it is unfavorable when debt payment is compared to national revenue collected being of which Uganda is the highest in the region at 54 percent.
He noted that the interest payments on domestic and external debt during the financial year 2017/2018 amounted to 2.34 trillion shillings which is 17 percent of the total revenue collections, above the limit set in Public Debt Management Framework, 2013 of 15 percent.
The report released to the speaker of parliament Rebecca’s Kadaga indicated that Uganda’s debt had increased from 33.99 trillion shillings in June 2017 to 41.51 trillion by June 2018.
how ever Martia Kasaija says the current debt levels are comfortably below the international sustainability thresholds below 50% debt to GDP ratio.
Kasaija says a debt can only become unsustainable if the debt burden is beyond the 50 percent threshold.