back to top
HomeBusinessOP-ED: How UGX 1.7 Trillion Loan Will Relieve Parliamentarians & Voters 

OP-ED: How UGX 1.7 Trillion Loan Will Relieve Parliamentarians & Voters 

Published on

- Advertisement -spot_img

By Ben Ssebuguzi

Kampala: Developing countries rely on international borrowing to finance special projects, infrastructure and to compensate for the needed revenue. Due to natural disasters like heavy rains, mud slides have adversely affected aids to trade like roads, where even the paved ones have either developed potholes or narrowed hence causing accidents.

Even the marrumones are already in poor shape yet they help to transport farmers produce hence informing policy makers and economists to borrow in order to bridge that gap at a time when government earnings have shrunk due to COVID-19 impact. That’s how borrowing can also smoothen national consumption.

Is It Sustainable To Borrow?
The ability of a sovereign government to
borrow on international credit markets depends on its perceived ability to repay and on the incentives it will have to do it (Gelos, Sahay and Sandleris, 2004).

Furthermore, creditors are only willing to extend credit based on the credit worthiness of the country. There is no lender who can extend credit to you when he wants you to default which means that Uganda has a healthy outlook in medium and long term.With oil exploration in the pipe line plus other resources like gold, Uganda becomes attractive to lenders like Stanchart Bank.

How It Is Good For Parliament To Approve Loans.
Article 79 of the constitution provides for the main function of Parliament, which is among others is to approve loans like the Ugx 1.7 trillion which government wants to borrow in order to plug the budget.

In conclusion, by Parliament approving government request to borrow to increase UNRA budget for roads, they are doing it for Ugandans who keep pestering them to make for them roads on their meager salary. At the end of the day government programs like PDM, Myooga which are premised on agriculture and trade will be stifled because of poor roads.

In summation, this loan will reduce the pressure on members of Parliament wallets because they don’t want to disappoint voters. This loan will also help government attain their development targets like Vision 2040.

Ben Ssebuguzi is the Secretary General, Uganda poor youth movement, A 2019 Public Opinions Certified Public Awareness and information dissemination fellow, A July 2022 Chartered international Business Leadership Fellow by Public Opinions.

Related

Here is why the Faras Uganda is the Ultimate Convenience Mobility App for Every Ugandan

Kampala, Uganda – In a fast-paced world where time is increasingly precious, Ugandans are...

Museveni Inaugurates De Heus State Of The Art Fish Feed Factory In Njeru, Buikwe

Njeru, Jinja: De Heus Animal Nutrition, a global leader in animal feed solutions, has...

Big Size: Bebe Cool Turns Hidden Agendas Music Video Into Cinema

On Friday, August 29th, singer Bebe Cool released the video for Hidden Agendas, another...

Engulfed Businessman Asiimwe Emmanuel Has A Case  To Answer Regarding Forgery And Uttering Forged Documents, Risks Jail If Found Guilty

In a blockbuster ruling at Buganda Road Court on Wednesday, the Chief Magistrate, His...

More from The Capital Times

Business Boom In Namugongo Ahead Of Martyrs Day

Business has picked up this morning at Namugongo Martyrs shrine according to traders. The...

Uganda Adopts Kiswahili As Official Language

Uganda has adopted Kiswahili as an official language, a top government official said on...

Big Size Recap: London Parties With Legendary Bebe Cool’s Break The Chains Album Was Massive

On August 12th, Bebe Cool held a successful listener’s party at Masq London, Restaurant...