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June 23, 2024
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Borrowing is the only Choice that Uganda has – Ministry of Finance

The state minister for General Duties in the Ministry of Finance Henry Musasizi has come out to reveal that Uganda has no choice but to continue borrowing in order to run the day to day affairs even after exceeding the borrowing limit.

He made the comments after he was questioned why the country has continued to borrow even after bypassing the 50% of the borrowing budget ratio a thing that indicates that a country borrows a lot.

Mr Musasizi said that the borrowing is as a result of too many Ugandans not paying taxes yet they want good services.

This in turn forces the government to resort to borrowing to satisfy the demands of the people it serves.

“You are likely to see more borrowing because of the pressures we are experiencing. Can we stop borrowing? No, because we use the funds to finance the budget and we don’t collect enough through taxes,” the minister said.

Musasizi says that Uganda through the URA are devising ways of being able to collect more revenue from the citizens especially those in the informal sector who don’t pay direct taxes from returns of their business profits.

The minister further notes that the the tax collecting body can at the moment only manage to collect 13% of the potential tax targets due to various factors like tax evasion, failure to file tax returns and corruption in URA.

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