The chairperson of the Budget Committee of Parliament Amos Lugoloobi has advised government to rein in its appetite for borrowing.
Lugoloobi observes that government uses domestic borrowing to plug budget deficits and this has led to the private sector being squeezed out of the credit market.
At the start of the month Parliament demanded for a statement from the Executive on the country’s public debt status since loan requests in millions of dollars are being made almost every week.
The Finance State Minister in charge of Planning, David Bahati told Parliament that Uganda’s Public debt stock which comprises of both domestic and external debt has now hit the US$ 10.7bn mark, which the equivalent of Shs41.326.1trillion.
The domestic debt is US$ 3.5billion (Shs 13trillion) equivalent of 32.4 percent of total debt.
Lugoloobi asserts that this does not augur well for private sector credit which only stands at 15% of GDP.
