The Parliamentary Budget Committee has called for the improved fiscal and budget planning to avoid the always increasing burden of domestic arrears.

While presenting the Budget Framework Paper for the next financial year 2025/2026, the Chairperson of the Committee, Remegio Achia, the Pian County MP warned that if the Government doesn’t reduce its borrowing appetite, the country’s public debt is bound to increase annually.

As per the current financial year, Uganda’s domestic arrears stand at 14 trillion shillings of which in the next financial year only 200 billion shillings for the item has been allocated which the committee has rejected.

The committee instead proposed for an allocation of 1.5 trillion shillings in the subsequent five financial years until 2030 to enable clearing off of the domestic arrears.

Achia further advised the Government to adopt better financial practices of avoiding committing Government before resources are availed for a particular activity to curb the increasing domestic arrears which at times attract interests.

By Francis Lubega

30 January 2025

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