Report on Public Debt, Guarantees, Other Financial Liabilities and Grants for Financial Year 2020/21
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MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT REPORT ON PUBLIC DEBT, GUARANTEES, OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2020/21 Presented to Parliament by HON. MATIA KASAIJA Minister for Finance, Planning and Economic Development MOFPED MARCH 2021 #DoingMore The Public Debt Report is an annual publication of the Ministry of Finance, Planning and Economic Development. Reproduction in full or in part is permitted provided due acknowledgement of the source is made. This Report is available on the Ministry of Finance, Planning and Economic Development website www.finance.go.ug Enquiries concerning the publication should be addressed to: The Director Debt and Cash Policy Ministry of Finance, Planning and Economic Development Plot 2-12 Apollo Kaggwa Road P.O. Box 8147, Kampala, Uganda Tel: (256) 414 707 162 Email: [email protected] / [email protected] MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT REPORT ON PUBLIC DEBT, GUARANTEES, OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2020/21 Presented to Parliament by HON. MATIA KASAIJA Minister for Finance, Planning and Economic Development March 2021 MOFPED #DoingMore CONTENTS List of Tables .......................................................................................................................................iii List of Figures .....................................................................................................................................iv Acronyms .............................................................................................................................................v Foreword ............................................................................................................................................vii Executive summary ..........................................................................................................................viii 1.0 Fiscal Deficit financing and Public Debt in FY 2020/21 ...................................................... 1 1.1 Economy ................................................................................................................................ 1 1.2 Fiscal Balance ........................................................................................................................ 1 2.0 Domestic Debt ......................................................................................................................... 3 2.1 Domestic Debt Stock ............................................................................................................. 3 2.2 Domestic Debt Trends ........................................................................................................... 4 2.3 New Domestic Debt issued during FY 2020/21 .................................................................... 5 2.4 Domestic Debt Service .......................................................................................................... 5 2.5 Market Developments ............................................................................................................ 5 3.0 External Debt .......................................................................................................................... 6 3.1 External Debt stock by creditor category .............................................................................. 7 3.2 Multilateral Creditors Composition ....................................................................................... 7 3.3 Bilateral Creditors Composition ............................................................................................ 8 3.4 Undisbursed Debt Stock ........................................................................................................ 9 3.5 External Debt Service ............................................................................................................ 9 3.6 Currency composition of External Debt .............................................................................. 11 4.0 New External Financing ....................................................................................................... 12 4.1 New Loans approved by Parliament in FY 2020/21 ........................................................... 12 4.1.1 New Loans approved by Creditor as at 28th February 2021 .......................................... 13 4.1.2 New Loans Approved by Sector as at 28th February 2021 ............................................. 13 4.1.3 New Loans approved by Parliament after publication of the FY 2019/20 Report .......... 13 4.1.4 Loans disaggregated by funding modality ...................................................................... 14 4.1.5 Loans in pipeline ............................................................................................................. 15 4.1.6 Creditor Terms ................................................................................................................. 17 4.2 Grants signed in FY 2020/21 as at 28th February 2021 ....................................................... 17 4.2.1 Grants signed by Development Partner ........................................................................... 18 4.2.2 Grants signed by Sector ................................................................................................... 18 4.2.3 MDALGs authorized to receive grants on behalf of Government .................................. 18 4.3 COVID-19 support received from Development Partners .................................................. 19 4.4 Trends in New External Financing ...................................................................................... 20 5.0 Guarantees and Contingent Liabilities ............................................................................... 21 5.1 GoU Loan Guarantees as at 31st December 2020 ................................................................ 21 Report on Public Debt, Guarantees, Other Financial Liabilities and Grants for FY 2020/21 i 5.1.1 Performance of GoU Loan Guarantees ........................................................................... 21 5.1.2 Pipeline Guarantees .................................................................................................................. 23 5.2 Implicit Contingent Liabilities ............................................................................................. 23 5.2.1 Non-Guaranteed Debt and other liabilities of State-Owned Enterprises (SoEs) and Extra Budgetary Units (EBUs) .........................................................................................23 5.2.2 Non-Guaranteed Debt and other liabilities of Local Governments ................................. 26 5.2.3 Contingent Liabilities arising from Public Private Partnerships ..................................... 26 5.3 Domestic Arrears as at June 2020 ........................................................................................ 26 5.3.1 Central Government Domestic Arrears ........................................................................... 27 5.3.2 Local Government Domestic Arrears .............................................................................. 28 6.0 Public Debt Sustainability.................................................................................................... 29 6.1 Public Debt Sustainability Stance as end June 2020 ........................................................... 29 6.2 External Debt Sustainability Stance as end June 2020 ........................................................ 29 7.0 Technical Assistance ............................................................................................................. 31 7.1 Technical Assistance by Development Partners .................................................................. 31 7.2 Technical Assistance by Sector from 2010 to 2019 ............................................................. 32 8.0 Performance and achievements of objectives of development assistance ....................... 33 8.1 Budgeted External resources vs. Actual disbursements ...................................................... 33 8.1.1 Trend in Financial Performance of Development Assistance ......................................... 34 8.2 Grant Disbursements as at 31st December 2020 .................................................................. 34 8.2.1 Grant Disbursements by Development Partner as at 31st December 2020 ..................... 34 8.2.2 Grant Disbursements by Sector ....................................................................................... 35 8.3 Loan Disbursements as at 31st December 2020 ................................................................... 35 8.3.1 Loan Disbursements by Sectors ...................................................................................... 36 8.3.2 Loan Disbursements by Development Partner ................................................................ 36 8.4 Measures to improve absorption and utilisation of external resources ............................... 36 8.5 Alignment of Development Assistance to the NDP III ....................................................... 37 9.0 Projects managed outside Government systems (off-budget) ........................................... 41 9.1 Off-budget projections by Development Partner ................................................................. 41 9.2 Off-budget projections by Sector ........................................................................................