CSOs calls for fiscal discipline, inclusive growth despite positive S&P Global report.

The S & P global report has revised Uganda’s economic outlook to “Positive,” recognizing our strong growth and rising forex reserves. Deaoitehe positive report Civil Society organization under their umbrella Civil Society Budget Advocacy Group (CSBAG) have urged the government to enforce fiscal discipline, and prioritize inclusive growth. 

During a press conference held on 12th November 2025 at their offices in Ntinda, the Executive Director of CSBAG Mr. Julius Mukunda said that “For every UGX100 invested, UGX40 is lost Due to the inefficiencies from the Unpreparedness of the government in Implementing projects before borrowing. This staggering inefficiency translates into Penalties for idle loans and cost Overruns,” Mukunda said

He said that recent decision by S&P Global to revise Uganda’s economic outlook from “Stable” to “Positive” has been widely welcomed as a sign of recovery and Resilience.

This upgrade according to CSBAG, however, is a signal that Uganda is at a critical crossroads, and the path to sustainable, inclusive growth requires taking hard decisions.

While the 6.3% growth in FY2025/26 and record foreign exchange reserves amounting to USD 5.4Billion in September 2025 are commendable, the Civil Society Budget Advocacy Group (CSBAG) argues that the country’s fiscal foundations are cracking under the weight of expensive domestic debt, persistent supplementary budget.

According to the World Bank, Uganda’s total public debt has soared to UGX 120 trillion, with domestic debt—the more expensive option—making up half of this Burden. “With domestic debt, which is more expensive, the government pays 15–17% interest, compared to 2–3% on concessional loans,”

He argued that the government must improve its implementation Capacity before securing new loans to stop the hemorrhage of funds through inefficiency and costly fines for delayed projects and a shift in borrowing strategy, emphasizing the need to prioritize concessional financing with its more manageable interest rates. “This must be coupled with stricter fiscal discipline to curb the prevalent culture of supplementary budgets for non-emergencies and to ensure greater transparency in Classified expenditures” he said