The executive director of the Civil Society Budget Advocacy Group (CSBAG) Mr Julius Mukunda has tasked the government to put in place stringent accountability measures, to curb the ongoing revenue losses registered in different Ministries, Departments, and Agencies (MDAs).
Speaking to reporters about their analysis of the recently published Auditor General’s Report on Sunday, February 9 in Kampala, Mr Mukunda said the country would save a lot if it implemented strong accountability measures and as well make corruption too expensive.
“In debt alone, you find that undisbursed loans in the previous financial year increased by Shs1.8t, leading to Shs73.9b in commitment fees paid by the government. Over the past six years, Uganda has lost Shs469.7b in such fees,” he said
He added “Additionally, debt servicing now consumes 20.99 percent of Uganda’s domestic revenue, surpassing the 12.5 percent threshold set by the Charter for Fiscal Responsibility. This trend, according to the Auditor General, threatens the country’s fiscal stability. “We are witnessing an alarming rise in interest payments, from Shs3.917b in FY2021/22 to Shs5.8b in FY2023/24,”
Mukunda said that Uganda is grappling with substantial losses due to inefficient loan management and underutilization of borrowed funds.
He further decried the significant revenue losses incurred by the government, including Shs68.8b in uncollected taxes on gold exports worth over Shs11t, as shown by the AG Edward Akol in his December 31, 2024, annual audit report.
Akol in the report said the Shs68.8b is an addition to the Shs439b in mineral rent fees that remained unpaid by June 2024, while incorrect tax classification resulted in further revenue losses.
These failures, Mukunda warned, “undermine the government’s ability to raise enough revenue to fund national development.”
The Ag’s report also showed that money lost by the government through wasteful spending amounted to Shs2.9t of the approved resource envelope. This according to the report includes Shs316.7b worth of expired medical supplies, Shs2.7t in overpaid project funds for uncompleted works, and Shs1.025b misallocated under the Emyooga and Parish Development Model (PDM) programs.
Mr Mukunda said that, “Every shilling wasted affects service delivery and the livelihoods of Ugandans. There must be stringent accountability measures in place to prevent further financial hemorrhage,”
The AG’s report also exposed the high cost of unprepared government projects.
He cited that out of the Shs11.8t allocated to 49 loan-funded projects, only 62 percent was disbursed, leaving Shs282.34b in government counterpart funds unused.
Of these, the report added 184 planned activities worth Shs6.4t were not implemented.
Mr Kenneth Asiimwe, an economist at CSBAG, noted that these investments highlight Uganda’s weak public financial management, where large sums of money are funneled into private companies without adequate oversight.
