economy 1 October 2026 Parliament of Uganda
Parliament Approves Fiscal Framework to Slash Public Debt by 2030
Lawmakers in Uganda's Parliament have greenlit a new five-year fiscal framework aimed at reducing the nation's public debt to 50% of its non-oil GDP by the 2030/31 financial year. The approval comes despite significant concerns raised by MPs regarding debt calculation, the enforceability of fiscal targets, and the government's performance under previous frameworks. Source: https://www.parliament.go.ug/news/4646/mps-pass-fiscal-framework-halve-public-debt
The Ugandan Parliament has passed a new Charter for Fiscal Responsibility, setting ambitious targets to significantly reduce the country’s public debt over the next five years. The framework, effective from FY2026/27 to FY2030/31, aims to bring the public debt down to 50 percent of the non-oil Gross Domestic Product (GDP) by FY2030/31, with projections indicating a peak of 55.1 percent in FY2027/28 before the decline.
Presented by the Budget Committee Chairperson, Hon. Amos Kankunda, the charter emphasizes a revenue-led fiscal consolidation approach, a reduction in commercial borrowing, improved expenditure efficiency, and responsible management of petroleum revenues. It also targets a decrease in the proportion of domestic revenue allocated to interest payments, from 32.5% in FY2026/27 down to 20% by FY2030/31. The fiscal deficit, excluding petroleum revenue, is also slated for a substantial reduction from 6.6% to no more than 1.5% of non-oil GDP.
Despite the approval, several legislators voiced concerns. Hon. Gyaviira Lubowa highlighted issues with GDP rebasing, debt computation methods, and the lack of a successor strategy for domestic revenue mobilization. Others, like Hon. Karim Masaba, questioned the accuracy of debt calculation, advocating for the use of nominal values. Concerns were also raised about the enforcement mechanisms for the 50% debt target, with questions about how the government would be held accountable if it failed to meet the objective.
Some MPs, including Hon. Faith Nakut, supported the charter, viewing it as a crucial guide for the upcoming budgeting process. Conversely, others, such as Hon. Denes Sekabira, argued for accountability on the previous framework’s performance before adopting a new one. The Leader of the Opposition, Hon. Joel Ssenyonyi, suggested that the government’s reported debt figures might not present the complete financial picture.
The Minister of Finance, Hon. Henry Musasizi, urged for the charter’s approval to facilitate the budgeting process, assuring Parliament of the government’s commitment to debt reduction. Parliament ultimately approved the charter, incorporating recommendations from the Budget Committee.