"The government is always saying the debt-to-GDP is sustainable. It is just about 51% of the of the GDP, which is really not that sustainable,"
"Borrowing is not bad if the money is put into good use. But we're seeing time and time again, money has not been put into good use."
"The ministry said this was to "avoid crowding out of the private sector, curb the rising debt-to-GDP ratio, and address the growing burden of interest payments relative to revenues.""
"A lot of money was generated from the public. But the public can only give you that if they know the money is not going to go into someone's pocket,"
Uganda's national debt stands at $32.3 billion, and the government recently approved a 9 trillion shilling ($2.5 billion) loan, raising concern over fiscal sustainability. Many citizens see little benefit from borrowing as promised projects fail to materialize. Economist Steven Alor warns of consequences including unbuilt roads, neglected health facilities, and unfinished or delayed infrastructure. The government reports a debt-to-GDP of about 51% and plans to cut domestic debt issuance for 2026-2027 to reduce crowding out, curb the rising ratio, and address growing interest burdens. Economic projections rely heavily on contested oil production.
Read at www.dw.com
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