Kampala, Uganda – As the nation awaits the reading of the 2025/26 national budget this Thursday, civil society organizations (CSOs) have raised concerns over Uganda’s escalating public debt, urging the government to adopt concrete mechanisms to reduce the burden.
The Uganda Debt Network (UDN), a leading CSO in budget and public finance advocacy, has warned that the growing debt levels should be a source of serious concern for all Ugandans.
In an exclusive interview with our reporter on Tuesday, Esther Mufumba, Program manager at Uganda debt network said the current trajectory of borrowing and underutilized public resources is unsustainable and could threaten the country’s economic stability.
“Ugandans must be worried. The continued accumulation of debt without corresponding productivity or proper utilization of borrowed funds puts future generations at risk,” she stated.
She also pointed to corruption and weak financial management systems as significant barriers to the government’s ability to effectively service its loans.
She noted that mismanagement and misuse of borrowed funds have not only eroded public trust but also undermined the country’s fiscal credibility.
She urged the government to urgently implement strategies to reduce debt accumulation and improve the management of borrowed resources
Finance Minister Matia Kasaija is expected to read the UGX 72.1 trillion National budget on Thursday, with a notable share of approximately Shs27. 58 trillion of the national budget will go towards servicing both domestic and external debt.
“The government should consider prioritize debt sustainability measures, transparency in public spending, and better investment in projects that offer real returns,” Ms Esther emphasized.
The national budget comes at a critical time as Uganda navigates post-pandemic recovery efforts, inflationary pressures, and increasing demands on public services.
Stakeholders, including economists and development partners, are expected to closely scrutinize this year’s budget for signs of fiscal discipline and long-term planning.
After the reading of the budget, UDN and other CSOs plan to release a detailed post-budget analysis, focusing on the implications of budget allocations on debt management and economic growth.
