Uganda, Jan. 2 -- Bank of Uganda has said government now spends 30 percent of taxes to service debt, increasing pressure on domestic revenues.

In details contained in the State of the Economy Report for the period ended December, Bank of Uganda indicated that "interest payments and debt servicing continue to exert pressure on domestic revenues" breaching the 2018 Public Debt Management Framework (PDMF) threshold of 12.5 percent of domestic revenues, to grow to 30 percent in the year ended October from 24 percent in the same period in 2020.

The growth, Bank of Uganda said, exerts pressure on domestic revenues to finance debt liabilities at the expense of other priority budgetary items.

"Domestic debt interest payments accounts for the l...