uganda budget

Presenting the 2015/16 financial year budget to Parliament presided over by Speaker, Rebecca Kadaga; the finance minister Matia Kasaija said 60% of Uganda?s debt stock is external and 40% is domestic.

The theme of this year?s budget is: ?Maintaining infrastructure investment and promoting excellence in public service delivery.

The minister explained that the increase in public debt reflects the increased borrowing to finance infrastructure investment.

?Although our public debt has increased faster compared to past trends, it is sustainable in relation to the size of the economy,? the minister said.

Uganda?s external debt portfolio consists largely of highly-concessional loans characterized by long maturities and very low fixed interest rates.

?This further explains why our public debt remains sustainable over a long period in the future. But if our access to the concessional window gets more constrained, Government shall continue to diversify its sources of debt financing,? Kasaija said.

By Apollo Mubiru, The New Vision

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