The Auditor General of Uganda, John F.S. Muwanga, has revealed that government domestic arrears stood at UGX 8.4 trillion as of June 30, 2025, marking a significant reduction from the previous financial year.
According to the Auditor General’s review of the Consolidated Financial Statements of the Government of Uganda, the arrears reflect a 39 percent drop from UGX 13.814 trillion recorded in the prior year.
“A review of the Consolidated Financial Statements of the Government of Uganda and the disclosure in Note 25 revealed that the GoU had accumulated domestic arrears to a tune of UGX 8.4 trillion as at 30th June 2025, a reduction of 39% from prior year arrears of UGX 13.814 trillion. This office is conducting a comprehensive verification of the domestic arrears across all Ministries, Departments, Agencies, and Local Authorities,” he noted.
The Auditor General added that the ongoing exercise aims to establish the accurate stock of domestic arrears across government entities.
“The objective is to determine the accurate stock of domestic arrears for the Government. Detailed procedures have been designed to ensure that the Government’s position on domestic arrears is accurately reflected. The detailed findings will be published separately,” he said.
Domestic arrears unpaid government obligations to suppliers, contractors, and service providers have long posed fiscal and liquidity challenges within Uganda’s economy. The verification exercise is expected to provide clearer insight into the actual liabilities and guide policy decisions on arrears management and public financial accountability.
