By Mulengera Reporters
The latest figures on government payables have raised alarming concerns about Uganda’s fiscal health, with a sharp rise in arrears from UGX 10.5 trillion in the 2022/2023 financial year to UGX 13.46 trillion in 2023/2024.
A significant contributor to this surge was the contracting of new payables amounting to UGX 6.63 trillion, compared to only UGX 3.68 trillion in payments made during the same period.
In his latest report, the Auditor General highlights a troubling trend: the government’s rate of accumulating domestic arrears by far exceeds the rate at which payments are being made. This mismatch is creating a growing financial burden, with key sectors like health and education bearing the brunt.
Both health and education sectors have faced delays in receiving salaries and operational funds, exacerbating the already strained service delivery systems.
The implications of this growing fiscal pressure are profound. Service providers are unable to meet their obligations, leading to disruptions in essential services and the government faces mounting obligations that could further strain its budget in the long term.
To address these concerns, experts are calling for stronger enforcement of commitment controls and the implementation of more effective budgeting mechanisms. These steps are seen as essential to preventing the unchecked accumulation of arrears and ensuring long-term fiscal sustainability.
