Steven Alor, an economist at the Civil Society Budget Advocacy Group (CSBAG) has said that if government continues allocating Shs217 billion to clear its domestic arrears annually, it would take up to 35 years for all its creditors to be paid.
Alor, who was meeting MPs on the Budget Committee, said the unchecked accumulation of domestic arrears by government was stifling the growth of the private sector.
By June 2023, domestic arrears stood at Shs 8 trillion.
Jeff Wadulo, also from CSBAG told MPs that the rate at which the arrears have accumulated is worrisome and reflects little or no effort to enforce the 2021 strategy to eliminate and control domestic arrears.
CSBAG called on government to enforce strict control mechanisms, including holding accounting officers who flout the Public Finance Management Act by accumulating arrears with no effort of payment, culpable.
They also want Parliament to push for an increase in budgetary allocation to clear domestic arrears in the next financial year.
CSBAG presented a list of expenditure budget items that could wait as a strategy to secure more money for clearing arrears and cater for other unfunded priorities.
Ugandan enterprises urged to explore regional oil and gas opportunitiesThese include donations, official ceremonies, state functions, travels, workshops, and classified assets and expenditures.
“We are talking about repurposing; we are looking for where to get money apart from fighting corruption. We, for example, do not know the details of the classified budget, but MPs who look into it can consider those items that could wait?” said Wadulo.
Some MPs on the Budget Committee agreed with the CSBAG, citing some of the arrears not budgeted for in the coming financial year.
“There are arrears within government assurances that should be prioritized. The Minister of Finance committed on the Floor of Parliament that the government would clear its debts on coffee and tea seedlings, but it is not provided for; these should be prioritized because government committed,” said Abed Bwanika (NUP, Kimaanya-Kabonera Division).
Buyamba County MP, Gyaviira Ssemwanga said that, ’these are domestic suppliers who procured loans from the banks; if they are not paid there is a net effect on the economy’.
