Finance ministry outlines tough measures to curb rising public debt
In a public update shared today on social media platform X [formerly Twitter], the ministry acknowledged that public debt remains “moderately elevated”
KAMPALA, May 15, 2026 – Uganda’s Ministry of Finance, Planning and Economic Development [MFPED] has unveiled a package of fiscal and policy measures aimed at curbing the country’s rising public debt, which has climbed to Shs 130.8 trillion by the end of 2025, according to the latest official statistics.
In a public update shared today on social media platform X [formerly Twitter], the ministry acknowledged that public debt remains “moderately elevated” and outlined a medium-term strategy focused on boosting domestic revenue, improving debt management, and expanding access to concessional and non-debt financing.
“As we head into FY 2026/27, we shall be implementing key measures to effectively manage public debt,” the ministry stated, highlighting a renewed push for fiscal discipline and efficiency in revenue collection.
Revenue mobilisation and tax compliance drive
Central to the plan is the implementation of the Domestic Revenue Mobilisation Strategy [DRMS], which seeks to widen the tax base and reduce tax evasion. The ministry noted that the rollout of the Electronic Fiscal Receipting and Invoicing Solution [EFRIS] will play a key role in improving compliance and transparency.
Officials said revenue performance has already shown significant improvement in recent years, nearly doubling from Shs 17 trillion in FY 2019/20 to Shs 32 trillion in FY 2024/25, signalling strengthened collection systems.
Shift towards concessional and alternative financing
The government also plans to increase reliance on concessional financing, including funding from multilateral institutions such as the World Bank and the International Monetary Fund [IMF], in a bid to reduce the cost of borrowing.
In addition, authorities are advancing the Public Investment Financing Strategy [PIFS], which aims to expand non-debt financing options. Among the highlighted initiatives is the proposed Uganda Sovereign Sukuk, designed to attract ethical and alternative investment into national development projects.
Debt management and credit outlook
The ministry further confirmed the rollout of the 2026/27 Medium Term Debt Management Strategy [MTDMS], which prioritises reducing the proportion of interest payments relative to domestic revenue in order to ease pressure on the national budget.
Uganda’s credit profile remains stable, with ratings indicating cautious investor confidence. The country is currently assessed as “B- Positive” by S&P Global Ratings, “B Stable” by Fitch Ratings, and “B3 Stable” by Moody’s.
Governance concerns over asset declaration compliance
In a related development, the Inspectorate of Government has raised concerns over compliance with asset declaration laws among public officials.
According to Inspector General of Government [IGG], Aisha Batala Naluzze, 61,570 public officers failed to declare their income, assets and liabilities during the April wealth declaration exercise.
Speaking today at the Uganda Media Centre in Kampala, she said out of 302,800 officials required to comply, only 241,230 submitted their declarations, prompting warnings of disciplinary action.
“Those who failed to declare risk appearing before the Leadership Code Tribunal and may face penalties including demotion, fines, or imprisonment,” the IGG cautioned.
The developments come as the government intensifies efforts to strengthen fiscal discipline and public accountability amid growing pressure to manage debt sustainably while maintaining development spending.
Uganda loses an estimated Shs 9.1 trillion to Shs 10 trillion to corruption every year. This staggering sum represents approximately 44 percent of the country’s total domestic revenue.
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