The Minister of Finance, Musasizi, has revealed that the government is in discussions with the World Bank regarding reductions in funding.

 The Honorable Henry Musasizi, State Minister for Finance, has disclosed that the government is currently in talks with the World Bank regarding the bank's decision to reduce its funding for projects in Uganda.

Musasizi stated, "We are engaged in negotiations with the World Bank, and if we are unable to reach an agreement, we will need to make certain budgetary decisions that will be presented to Parliament for approval."

This information was shared with the Committee on Finance, Planning, and Economic Development during a meeting held on Thursday, August 10, 2023. The Committee's Chairperson, Honorable Amos Kankunda, inquired about the government's strategies for dealing with the repercussions of the World Bank's decision.

The World Bank had issued a statement on August 9, 2023, announcing the funding cuts as a result of the recent passage of the Anti-Homosexuality Act, 2023, in Uganda. The statement detailed that a team was dispatched to Uganda to evaluate additional measures required to ensure that projects align with the World Bank's environmental and social standards.

The World Bank's statement read, "No new public financing will be presented to our Board of Executive Directors for Uganda until the effectiveness of these additional measures has been verified."

Musasizi highlighted that several projects planned for the 2023/2024 fiscal year, particularly in the Greater Kampala Metropolitan area, would be impacted by the funding reduction. He cautioned that the World Bank's decision would have significant implications for the government's operations.

"We are currently collecting ideas on how to adjust the budget, but any changes will necessitate your approval," Musasizi assured the committee members.

In a different context, Members of Parliament (MPs) expressed concerns about Uganda's domestic debt and the government's delays in paying the private sector.

Honorable Jane Pacuto, Deputy Chairperson of the Committee, remarked that domestic arrears amounted to over shs7 trillion, and this was detrimental to the affected sectors. She stressed the importance of timely payments to the private sector as a means of stimulating economic growth and expanding the tax base.

Honorable Muwanga Kivumbi (NUP, Butambala County) urged the Finance Ministry to provide up-to-date records of outstanding reimbursements to the Bank of Uganda. He also requested information about primary debt obligations owed to domestic suppliers across all Ministries, Departments, and Agencies.

Similarly, Honorable Karim Masaba (Independent, Industrial Division, Mbale City) asked the ministry to furnish the committee with figures pertaining to the revenue collected by the Uganda Revenue Authority.

Regarding the domestic debt issue, Musasizi attributed the delays in payments to limited financial resources. He clarified that comprehensive data on the government's domestic debt obligations would be presented after a scheduled audit in December of the same year.