It is sad as well as a financial scandal to see a Government which has been in power for over 25 years now get involved what may be better termed as financial scandals. The currency is depreciating almost daily. Here and there are threats to strike as the pay to majority of workers does not make sense any more.
One thing for sure responsible for this development is the amount of money poured by the NRM into the elections, everything else is secondary. There must be financial discipline, yet Government must be seen respond to people's ills.
Finally, Presidential pledges must be properly examined before execution, otherwise we are headed for hell;
GOVT. SEEKS SHS 120BN FOR BUDGET SUPPORT
By Isaac Imaka
Posted Thursday, July 14 2011 at 00:00
The government is seeking more than Shs120 billion to finance the 2011/12 budget, Parliament heard yesterday. Junior Finance Minister Aston Kajara, who presented a loan request of $50 million (Shs125 billion) from the World Bank, said the funds will be used to support the financial sector development policy operation and to run the government’s reform efforts, in line with the National Development Plan.
“The development objective of the financial sector government is undertaking and upon which the proposed credit is based, is to help build a more efficient, robust financial sector which can support private sector growth,” Mr Kajara said.
The loan has a maturity period of 40 years with a 0.75 per cent interest rate, including 10 years of grace period.
Opposition to plan
However, Butaleja Woman MP Cerinah Nebanda opposed the move to borrow money and asked government to first address corruption in its institutions.
“All the money you people have been borrowing has ended being eaten and little has been done to follow it up,” she said.
Mr Kajara said the two specific themes around which the ongoing reforms in the financial sector are organised include improving access to financial services and supporting the development of long -term finance.
Bukholi Central MP Wafula Oguttu said by taking up a loan with a 40-year grace period, “we are extending problems to our great grandchildren.”
But Kampala Central MP, Mohammad Nsereko supported the loan request, saying the government should borrow more given the current situation, but “put more money in agriculture and also help small scale business people.”
However, as government seeks to borrow the $50 millions, the country’s public debt has hit the Shs11 trillion mark up from $1.4 billion (about Shs3.2 trillion) in 2006/07 financial year, according to a Ministry of Finance report on loans, grants and guarantees.
It means the country’s public debt is now above the national budget of Shs9.8 trillion as read by the Finance Minister in the 2011/2012 Financial Year.