There has been a significant increase in the stock of verified arrears. The stock at end of FY 2016 stands at UGX
2.7 trillion, equivalent to 3.2 percent of GDP, an increase of over 90 percent over the last FY. In the absence of an
ageing analysis the vintage of arrears cannot be determined. The reported stock does not fully cover budgetary
central government (BCG)-sub-vented agencies; all categories of expenditure (salary and pensions); local
government and the broader public sector. Discrepancies exist between the verified stock and the annual financial
statements. While some of these may be due to differences in coverage and timing of submissions, there are issues
with the definition and recognition of arrears that do not encourage their full disclosure.