The East African
Wednesday February 10 2021
Banana traders at the outdoor market in Nakawa, Kampala. Uganda’s debt servicing burden continues to rise. FILE PHOTO | NMG
Summary
The country’s budget is projected at $12.38 billion, of which $5.66 billion will go to debt servicing, against total domestic revenue that is projected at only $5.88 billion.
The debt servicing burden continues to rise and government officials say the extra borrowing is necessitated by the need to cover for both the revenue shortfalls and the Covid-19-related expenditure needs.
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Uganda will spend a bulk of its domestic revenue on debt servicing in the next financial year as the country works to resuscitate its Covid-19 battered economy.