Kampala, Uganda: Civil society organisations have raised alarm over Uganda’s growing public debt and widening gaps in health sector funding, warning that the latest Auditor General’s report exposes serious weaknesses in the management of public resources.
Speaking during a press briefing at the Civil Society Budget Advocacy Group offices in Ntinda, Julius Mukunda, the Executive Director CSBAG, said the 2025 Auditor General’s report paints a troubling picture of Uganda’s fiscal health and the state of public service delivery.
According to him, the findings show Uganda’s public debt has expanded rapidly in recent years, rising from Shs69.2 trillion in the 2020/21 financial year to Shs115.4 trillion by 2024/25, representing an increase of more than 66 per cent in five years.
As a result, the country’s debt-to-GDP ratio has climbed to 50.29 per cent, approaching the 51.2 per cent ceiling set under Uganda’s Charter for Fiscal Responsibility, which is increasingly squeezing government spending on essential services.
“For every Shs100 collected in domestic revenue, about Shs24 is spent on interest payments alone,” Mukunda noted, warning that the trend significantly reduces the funds available for critical sectors such as health, education, agriculture and infrastructure.
He also highlighted weaknesses in Uganda’s domestic revenue mobilisation, noting that while tax collections have increased from Shs22.09 trillion in 2021/22 to Shs32.35 trillion in 2024/25, the country’s tax-to-GDP ratio remains stagnant at 13.4 per cent. This remains far below the 15 per cent benchmark for developing economies, the 18.6 per cent Sub-Saharan Africa average, and the 23 percent global average.
Mukunda noted that the low tax performance is partly due to a narrow tax base and weak compliance enforcement. Out of 5.25 million registered taxpayers, only 48 per cent are actively paying taxes, leaving more than 2.7 million taxpayers inactive.
Beyond revenue challenges, he also pointed to the growing problem of domestic arrears owed by government institutions to suppliers and contractors. According to the audit findings, government arrears rose sharply from Shs3.33 trillion in 2019 to Shs13.8 trillion in 2024 before dropping to Shs8.4 trillion in 2025 following the conversion of advances from the Bank of Uganda into treasury bonds.
“This restructuring improved the reported arrears position but did not reflect actual clearance of outstanding obligations to suppliers and service providers,” Mr Mukunda explained, warning that delayed government payments continue to strain private sector businesses.
Among several ministries, where unpaid bills have increased sharply, include the Ministry of Energy and Mineral Development, which rose from Shs7.14 billion to Shs80.11 billion, while the Ministry of Gender, Labour and Social Development registered a 176 per cent increase.
Meanwhile, the Ministry of Works and Transport paid Shs793.93 billion in arrears despite allocating only Shs10.83 billion for the purpose.
In the health sector, the audit report highlights critical funding gaps that civil society groups say threaten the availability of essential medicines in public health facilities.
The National Medical Stores required Shs1.574 trillion to procure medicines in the 2024/25 financial year but received only Shs1.393 trillion, leaving a shortfall of about 11 percent. The situation is even more severe at Mulago National Referral Hospital, which received Shs18.25 billion against a need of Shs72.39 billion, translating into a 75 percent funding gap for medicines.
Civil society groups warn that these funding shortfalls are already affecting healthcare delivery and increasing the financial burden on households. “These disparities constrain access to life-saving treatment and increase out-of-pocket expenditure for households,” Mr Mukunda noted, adding that women and children are often the most affected by shortages of essential medicines.
He strongly warned that unless the issues raised in the report are addressed decisively, Uganda risks further strain on public finances and worsening service delivery for citizens.
“The Auditor General’s report is a mirror of Uganda’s public financial management and service delivery systems,” Mukunda emphasized. “In that mirror, we must see the faces of women and girls who bear the heaviest burden when public resources are mismanaged.”
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