The Monitor publications media outlet has this Monday morning reported that each Ugandan individual has to contribute UGX 1.5m to clear a huge debt worth UGX 65 trillion. In a frontline page story with a screaming headline titled ‘Debt: Each Ugandan now owes Shs 1.5m’, analysts report an increment of the debt burden.
“The government has accumulated a staggering shs 65 trillion public debt up from shs 49 trillion in 2019 with officials justifying that they borrowed the money to finance infrastructural projects in transport, oil and gas sectors,” the paper goes ahead to report.
Economists argue that Uganda’s expenditure surpasses the tax base which is why the government is now resorting to the formulation of more taxes to bridge this gap. With aid being withdrawn by western donors and sanctions biting the Ugandan government, analysts warn that economic crisis could broaden. Important to note is that the government is still in the Hague battling a war related case where the verdict ruled that Museveni pays $10b in reparations to the DRC government. The DGF which also used to assist the economy is no more after a political wrangle where Museveni suspected that this fund was being directed at opposition activities. What befalls Uganda is difficult to understand. The country is spending trillions on paying cabinet salaries and facilitating security of course like any other military junta does.