Friday, January 22We Break the News

Uganda: Government to borrow money to clear cash crisis

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Finance minister Matia Kasaija has said there is an urgent need for government to borrow money to sort the current cash crisis.

Government is currently short on cash and has indefinitely suspended payment of all allowances for its workers.

Minister Kasaija tells KFM that they have made a request for a loan whose approval is being delayed by parliament’s lengthy formalities.

While defending the urgency to borrow, Kasaija says the current revenue flow is not sufficient to finance all demands. He says among the crucial demands that need financing are; the effects of the locust invasion, floods, and the poor road network.

Kasaija meanwhile dismisses as nonsense, reports that they have misused money to fund elections.

In a November 11th memo to the Ministry of Finance permanent secretary from the Accountant General, Lawrence Semakula said due to the poor cash flow, the government will only pay allowances for State House and ministry of defense workers.

Payments for wages, salaries, pension and gratuity, statutory obligations, and the electoral commission will not be affected.

The suspended payments include; lunch, mileage, transport, and overtime allowances.

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