Uganda’s debt not sustainable- Prof Suruma

 

By Samuel Ssebuliba

Economics expert have warned to relax its borrowing appetite before it is too late to rescue the countries indebted economy.

According  to the Auditor general’s report of 2018, Uganda’s public debt has increased by 22 per cent, rising from Shs 33.99 trillion as of June 30, 2017, to Shs 41.51 trillion as of June 30, 2018.

Speaking during KFM’ hot seat show yesterday, Dr Ezra Suruma the presidential advisor on finance also Makerere University Chancellor  said that the rate at which Uganda is borrowing is alarming and is likely to affect the economy.

He said that urgent avenues are needed that can ignite the country economy to be able to repay the monster debt.

However the minister for Finance matia Kasaijja said that Uganda’s debt to GDP ratio of 41 per cent is still below the International Monetary Fund risky threshold of 50 percent.