MPs Greenlight Fiscal Framework to Cut Public Debt

Members of Parliament have given their nod to the Charter for Fiscal Responsibility, a plan designed to guide the nation’s financial management for the next five fiscal years, from 2026/27 to 2030/31. The core objective is to bring Uganda’s public debt down to 50 percent of its non-oil Gross Domestic Product (GDP) by the end of the specified period.

The framework, presented by the Budget Committee Chairperson, Hon. Amos Kankunda, outlines ambitious targets for public debt, commercial borrowing, debt servicing, government expenditure, and the management of petroleum revenues. Projections indicate that public debt will reach a high of 55.1 percent of non-oil GDP in FY2027/28 before commencing its downward trajectory.

During the plenary session on September 30, 2026, the Charter received recommendations for approval, emphasizing revenue-led fiscal consolidation, reduced reliance on commercial borrowing, and enhanced expenditure efficiency. However, the approval was not without contention. Concerns were voiced regarding the accuracy of current debt computations, the enforceability of the set fiscal targets, and the government’s track record under the previous fiscal framework.

Some MPs, like Hon. Gyaviira Lubowa, advocated for a deferral, citing issues such as GDP rebasing, how petroleum recoverable costs are factored in, and the absence of a renewed Domestic Revenue Mobilisation Strategy. Others, including Hon. Karim Masaba, questioned the methodology used for calculating public debt. The Leader of the Opposition, Hon. Joel Ssenyonyi, likened the current debt reporting to an incomplete picture, suggesting hidden liabilities.

Despite these reservations, proponents of the charter, such as Hon. Faith Nakut, argued for its necessity in providing a clear roadmap for the upcoming budget cycles. Finance Minister Hon. Henry Musasizi urged for the charter’s approval to facilitate the budgeting process and pledged the government’s commitment to debt reduction over the next three years.

Ultimately, Parliament passed the charter, incorporating amendments proposed by the Budget Committee. This approval signifies a commitment to fiscal discipline and debt management, pending successful implementation and adherence to the outlined targets.

Source: Parliament of Uganda