CSBAG Sounds Alarm on Uganda’s Debt and Financial Mismanagement
The Civil Society Budget Advocacy Group (CSBAG) has raised concerns over Uganda’s growing debt burden and financial mismanagement, following a detailed analysis of the Auditor General’s report released on December 31, 2024.
During a press conference held at CSBAG offices in Kampala, Sunday, the organization highlighted critical fiscal issues that the government needs to urgently address to safeguard the country’s economic stability.
CSBAG revealed that Uganda continues to contract debt, but in some cases, the borrowed funds remain unused, leading to financial losses.
According to the Auditor General’s report, the country lost UGX 73 billion due to unutilized loans, raising questions about the efficiency of government borrowing and expenditure. Additionally, Uganda’s debt levels are increasingly threatening fiscal stability. “If we continue down this path, the country could find itself in a dire financial crisis. The government needs to put its house in order,” CSBAG warned.
One of the glaring issues cited was the failure to complete the Mbarara-Masaka energy transmission line, despite borrowing funds for the project. Similarly, the report highlighted delays in water and environment projects worth UGX 30.25 billion, which have remained incomplete for 15 months.
These setbacks raise concerns about Uganda’s ability to implement infrastructure projects in a timely manner, leading to wastage of borrowed resources. CSBAG emphasized the need for better public investment management, questioning Uganda’s preparedness to start and complete major projects efficiently.
Uganda’s revenue base remains low, yet the Auditor General’s report highlighted significant revenue losses. This raises concerns about the country’s ability to generate and sustain necessary public finances.
The report also uncovered financing irregularities, particularly in high-risk ventures, where UGX 930 billion in government funds were invested without clear safeguards. Such risky financial decisions, CSBAG warned, could have long-term negative effects on Uganda’s economy.
State enterprises were also criticized for poor corporate governance, which has led to inefficiencies and mismanagement of public funds. Additionally, procurement irregularities in goods and services remain a persistent problem, further straining public resources.
CSBAG further questioned the necessity of revising Uganda’s budget from UGX 52 trillion to UGX 61 trillion when only UGX 48 trillion was utilized. The discrepancy suggests that the budget increase was unnecessary and could have been avoided with better financial planning.
The organization called on the government to address these critical issues, warning that continued financial mismanagement could push Uganda into deeper economic instability. “We need accountability, transparency, and proper planning to ensure that public funds are used effectively. Uganda must strengthen its financial discipline to avoid unnecessary borrowing and mismanagement of resources,” CSBAG stated.
The press conference served as a wake-up call for the government to implement urgent reforms and improve fiscal discipline before the country’s economic situation worsens.
