Minister of Finance, Planning and Economic Development, Henry Musasizi, has revealed that Uganda’s total public debt stood at UGX 126.19 trillion as of December 2025.
Presenting the 2026/27 national budget at Kololo Ceremonial Grounds on Thursday, Musasizi said external debt accounted for UGX 57.33 trillion, while domestic debt stood at UGX 68.86 trillion.
The minister noted that the debt stock translates into a debt-to-Gross Domestic Product (GDP) ratio of approximately 53 percent.
However, he emphasized that public debt should not be viewed in isolation but assessed alongside the assets it finances and the economic returns generated from those investments.
According to Musasizi, Uganda’s borrowing over the past decade has largely funded strategic investments aimed at strengthening the country’s productive capacity and supporting long-term economic growth.
He said a significant portion of the debt has financed key infrastructure projects, with 31 percent invested in integrated transport infrastructure, 19 percent in electricity infrastructure, 10 percent in water infrastructure, and 9 percent in agro-industrialisation, among other sectors.
Musasizi maintained that these investments are laying the foundation for sustained economic transformation and improved competitiveness.
The minister further assured the country that Uganda’s public debt remains sustainable and is projected to remain so over the medium and long term, despite the increasing borrowing levels.
His remarks come amid growing public interest in the country’s debt position as government continues to finance major infrastructure and development projects intended to drive economic growth and improve livelihoods.
By Francis Lubega
11th June 2026
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