Uganda’s public debt is reported to have hit a record point of Shs116 trillion according to Civil Society Budget Advocacy Group (CSBAG).
Julius Mukunda, CSBAG’s executive director, warns that continued borrowing disproportionately affects low-income earners, perpetuating a cycle of dependency.
He added that Election-induced spending is placing a growing strain on public finances, potentially crowding out critical development priorities and fuelling higher borrowing. He says the surge in election-related expenditures, citing the recent Shs 8.1 trillion supplementary budget approved by parliament is a serious problem that needs to be addressed.
Mukunda urges the Bank of Uganda to maintain a tight monetary policy to keep inflation within the five percent target, while expressing cautious optimism that the newly introduced Public Investment Management system could help enforce more disciplined spending as elections approach.
He’s also critical of the government’s failure to effectively utilize borrowed funds, leading to high interest rates.
Mukunda says Ugandans should be worried about becoming slaves to their leaders due to unsustainable debt hence advising that focus should shift to efficient use of resources and debt management .
Mukunda disclosed this during his end of year address at CSBAG offices in Ntinda .
By Olivia Nabaggala
18th Dec 2025
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