The Civil Society Budget Advocacy Group- CSBAG has implored the government to address the flaring burden of domestic arrears. Led by their economist, Patrick Rubangakene, the Group made the call on Monday while presenting their position on the Ministerial Policy Statements for the 2023/2024 financial year before the Finance, Planning, and Economic Development Committee of parliament,
Rubangakene told the Committee chaired by Keefa Kiwanuka that the Shillings 200 billion budgeted by the Ministry of Finance to clear arrears is ‘insignificant’ to reduce the current burden of domestic arrears. It should be noted that Uganda’s domestic arrears have continued to increase annually from Shillings 2.75 trillion in the 2017/2018 financial year to Shillings 7.55 trillion in 2021/20222, an increase of 175 percent.
The latest Auditor General’s report for FY 202/2022 indicates that domestic arrears increased from Shillings 4.65 trillion in 2021 to Shillings 7.55 trillion in 2022. It’s against this backdrop that Civil Society argues that the Finance Ministry should urgently address this to avoid continued stifling of the country’s economic growth.
As a way forward, Rubangakene endorsed penalties for accounting officers who continue to accumulate domestic arrears that breach provisions of Sections 70 and 80 of the Public Finance Management Act, 2015. The Advocacy Group also rallied Government to develop a strict annual debt borrowing plan to counter the accumulating public debt burden whose nominal value reached 86.6 trillion Shillings as of June 2022.
While responding to the matter, Jane Avur Pacuto, the Deputy Chairperson of the Committee blamed the Finance Ministry for the accumulating domestic arrears arguing that the Ministry does not release what is approved.
Paul Omara, the Otuke County Member of Parliament observed that Parliament must be concerned and address itself to the matter. He noted that the indiscipline in government is unacceptable and that there is no guarantee that URA will achieve its revenue targets.
Founded in 2004, CSBAG brings together civil society actors at the national and district level to influence government decisions on resource mobilization and utilization, gender-responsive and sustainable development.
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