The Uganda National Roads Authority (UNRA) has stated that it is operating with a debt of more than shillings 528 billion as a result of an unreleased budget for the previous fiscal year.
This was revealed during the release of end of year financial and physical performance report by the roads authority in Kampala.
Samuel Muhoozi who presided over by the event on behalf of the executive director Allen Kagina highlighted all projects completed, under construction as well as those under planning within the financial year 2021/22.
However on financial performance, he revealed that the authority is operating with a debt burden of approximately 528.502 billion shillings.
The roads authority acknowledged that they were appropriated a budget for their recurrent and development activities from government of Uganda with the support of the development partners which were both utilized.
In addition, UNRA received funds from the Uganda Road Fund specifically for the maintenance and operation of the National Road Network.
According the Muhoozi, the total approved budget for financial year 2021/22 was shillings 3,654.6bn, of which shillings 3,150.76Bn (86%) was released by ministry of finance and the balance has not been paid.
He said that by June 2022, 76% of the approved government development budget was released out of which 99.8% was absorbed. However, UNRA closed the year with a debt of UGX 421.633 Bn on this budget component.
“UNRA had brought forward a debt of shillings 215.059 billion from the previous financial year 2020/21. This debt reduced the approved budget for financial year 2021/22 by the same amount. By close of FY 2021/22, UNRA closed with a total debt of shillings 528.502 billion,” Muhoozi explained.
Adding that “This is mainly due to the debt carried forward as well as the unreleased 24% of the approved GoU and URF budget for the year of reporting.”
He said that 46% of the required shillings 511 billion was released for land acquisition during the year, leading to UNRA’s failure to acquire Right of Way for ongoing and planned road development projects.
UNRA further attributed the poor absorption of external finances in projects like Luwero-Butalangu and the tourism roads due to appropriation of budget while they were still under project preparation.
On physical performance, UNRA said they are currently upgrading 23 roads from gravel to paved bituminous standards covering a total distance of 1,514.10 Km.
