In a press briefing at the party headquarters in Najjanankumbi, Kampala, the deputy president for the eastern region, Ms. Margaret Wokuri Madanda, expressed concern over the government’s decision to borrow locally from commercial banks.
She warned that such a move could disadvantage the business community, fearing that banks would prioritize government transactions over supporting local enterprises.
The FDC factions, both in Najjanankumbi and Katonga, united in condemning the government’s reliance on local borrowing for recently approved supplementary budgets.
Ms. Madanda emphasized that this approach could lead to a scenario where businesses struggle to secure loans, exacerbating the unemployment crisis in the country.
Meanwhile, Mr. Harold Kaija, the secretary general of the FDC Katonga faction, highlighted the potential negative impact on the economy, citing high interest rates and shorter repayment periods associated with commercial loans.
Parliament recently approved loans exceeding Shs5.2 trillion, including Shs3.5 trillion from local banks, further intensifying concerns about the country’s debt situation.
Both factions emphasized the need for accountability in the utilization of borrowed funds, with Mr. Kaija stressing the importance of ensuring the money is spent for its intended purposes.
Ms. Madanda questioned the government’s planning system, criticizing the reliance on supplementary budgets instead of incorporating essential expenditures into the main budget.
The FDC factions, despite past disagreements, have found common ground on the issue of government borrowing and the need for transparency in financial matters.