Uganda’s economy grew steadily on an average of 7% per annum for the two decades during 1990-2010.  This performance was exceptional and the country won the plaudits of many a commentator and was highly regarded as one of the best performers in the world. However, during years 2011- 2014 and thereafter this rate slowdown to an average of 5.5 % per annum.  The slowdown in the growth has been attributed to both internal and external factors.
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.