Parliament’s Budget Committee has rejected the Shs200Bn earmarked by the Ministry of Finance for the payment of domestic arrears, noting that the amount is paltry compared to the Shs14.06Trn Government owes to its supplies and instead wants Shs1.15Trn allocated in each of the coming years for the payment of domestic arrears.
Achia Remigio, Vice Chairperson Budget Committee revealed, “Next financial year, the projected allocation for Domestic arrears is only Shs200Bn. This falls short of the verified domestic arrears which according to the Auditor General’s Report, were over Shs14.06Trn in 2024 of which Shs8.312Trn are reimbursement to Bank of Uganda leaving Shs5.748Trn for unpaid invoices, pension and gratuity.”
The committee recommends that government provides Shs1.15Trn during FY 2025/26 and the subsequent financial years until 2019/2030.
This will clear the outstanding bill of domestic arrears of Shs5.748trillion. The committee recommends that to avoid further accumulation of arrears, unpaid certificates should take first call.
