The State Minister for Finance, Hon. Henry Musasizi, has revealed ongoing negotiations between the government and the World Bank following the latter’s decision to curtail funding.
The World Bank recently revealed its decision to curtail funding for various projects within the nation. This response stems from the recent enactment of the Anti-Homosexuality Act, of 2023, which has evoked widespread debate and implications.
According to Musasizi, these discussions are intended to address the funding reduction and possibly avert any consequent budgetary complications. However, he stressed that should an agreement remain elusive, the government would be compelled to make critical budgetary decisions, subject to parliamentary approval.
During a session with the Committee on Finance, Planning, and Economic Development, Members of Parliament also voiced concerns over domestic debt with domestic arrears exceeding shs7 trillion and private sector payment delays.
Deputy Chairperson of the Committee, Hon. Jane Pacuto, emphasized the gravity of this financial predicament saying that timely payments to the private sector play not only in meeting financial obligations but also in sustaining economic growth.
MP Hon. Muwanga Kivumbi called for transparency in the financial proceedings. He requested a comprehensive disclosure of outstanding reimbursements to the Bank of Uganda, as well as primary debt obligations owed to domestic suppliers. Kivumbi highlighted the substantial impact that deferred payments have on the nation’s economic advancement.
In his response, Minister Musasizi admitted that delayed payments and the ballooning domestic debt were due to limited funds, not government negligence. He promised that concrete figures on the government’s domestic debt obligations would come after a year-end audit.