President Museveni is Mortgaging Uganda, FDC Semujju claims

Kira municipality outspoken legislator who doubles as Forum for Democratic Change (@FDCOfficial1) spokesman hon Ssemujju Ibrahim Nganda rebuked president Museveni for what he called mortgaging the country. #Uganda #UgandaNews #WhisperEyeNews

Parliament on Friday, May 20th passed 2022/2023 financial year’s budget totalling Shs 48 trillion.

“We would like to invite citizens to critically examine the budget. The Budget does not offer immediate solutions to the rising cost of living in the country,” says MP Ssemujju Nganda.

According to the passed budget, taxes on essential goods such as fuel and raw materials were maintained. It announced no subsidy on critical items such as soap, paraffin, cooking oil and fuel.

“This means, that fuel prices will continue going up until the Almighty Allah brings them down,” MP Ssemujju said.

“Of importance to note, is the reckless borrowing by Mr Museveni to finance his government’s luxurious spending. Of the Shs 48 trillion budget, Shs 16.3 trillion has been reserved for debt repayment. The Shs 16.3 debt repayment amount includes over Shs 5 trillion which is interest on money borrowed,” he added.

According to MP Ssemujju the next financial year, Uganda will pay interest on money borrowed from local banks to about Ugx Shs 5 trillion.

The interest on treasury bonds per year has increased now to Ugx. Shs 4.1 trillion and on treasury bills is Ugx. Shs 583 billion.

Interest on money borrowed from outside the country is Shs 871 billion. The principal loan repayment on money borrowed outside is Shs 2.4 trillion.

“We are also required to pay Shs 137 billion commitment fees on money borrowed but delayed to use,” Mr. Ssemujju explained.

“Mr Museveni owes the country an explanation. Because as all this is taking place, our total debt as a country has reached Shs 73.5 trillion. Of this Shs 45.7 trillion is external debt and Shs 27.8 trillion is domestic debt,” he added.

To make matters even worse according to Kira municipality legislator the debt of Shs 73.5 trillion doesn’t include arrears which today stand at Shs 4.1 trillion.

It also doesn’t include guarantees to private people who have borrowed. Please understand that there are private companies that have been guaranteed. “Museveni has committed the country to pay in case these private companies default” he stated.

This is what they call contingency liability which today stands at Shs 160 trillion.

MP Ssemujju has declared Uganda as a country in crisis.