Uganda like other developing countries does not wholly finance its Financial Year National budget, hence is necessitating borrowing domestically and externally. Historically, Uganda has had a poor trend of public debt management which prompted a debt campaign by civic groups like Uganda Debt Network and Development partners including IMF and World Bank inter alia and the subsequent relief worth US$2b in 1990s through the Highly Indebted Poor Countries initiative (World Bank, 2000).
 However, Uganda’s public debt is gradually rising based on bilateral relations. For instance between January 2010 and June 2016, Government signed 96 loan agreements worth USD 8.8billion with China (in particular EXIM Bank) being the largest creditor at 29% of the total loans, followed by the World Bank (27%) and African Development Bank (21%). Other creditors account for 23% (BADEA, EIB, France, Germany, IFAD, Japan, Kuwait, OPEC, South Korea and Saudi Arabia).
 
A healthy population is a pre-requisite for a productive human resource that will directly impact a country’s economy and achieve national development.
Good health is therefore a foundation for development because healthy individuals are more productive, earn more, save more, invest more and consume more, all these have a positive impact on GDP of a nation.
This notwithstanding, Uganda still lags behind the required World Health Organization of   health expenditure target of 15% of the national budget. On contrary, the Government expenditure for the last 5 Financial Years has taken a downward trend from 9.6 FY 2009/10, 8.9 FY2010/11, 8.3 FY2011/12, and 7.8 FY 2012 /13 and 8.7 FY2013/14.  The available health financing mechanisms through donor funding, taxation and NGOs are also unreliable with Out Of Pocket (OOPS) financing dominating at 64.8% (African strategies for Health report 2016). Literature indicates that when health expenditures take a high proportion of household expenditure, expenditure becomes catastrophic and impoverishing in nature.

PRESS STATEMENT: Released 20th November 2016  

Members of Parliament seek Legal ways to Evade Taxes! Citizens Rise Up.
As you are aware, on 15th November 2016, Parliament returned the Income Tax (Amendment) Bill, 2016 to the President with a proposal to exempt MPs allowances from Taxes. The new Insertion under the Income Tax bill by MPs under Sec.21 “(qa) the employment income of person employed as a Member of Parliament, except salary” intends to  create a tax exemption on MPs’ emoluments and allowances, and adds to the list of special groups that are exempt for paying tax in their allowances (Police men, soldiers and prisons). The move for the MPs to insist on exempting their allowances from tax comes at a time when the country is grappling with resources to buy each of the 431 MPs a car for their term of service in the 10th Parliament. 

We would like to note whereas the average basic pay of an MP, for tax purposes is UGX 11.18m and that their average contribution to tax is 3.374m, an MPs in Uganda earns anywhere between 20 – 27 million (including other allowances). And in the spirit of the Ugandan Income tax law, which is progressive, the more you earn, the more you should pay. This should appeal more to the MPs who represent the poor communities from which we all come.