The government is set to clear domestic arrears owed to suppliers, with Shs200 billion allocated in the next budget.

Secretary to Treasury Ramathan Ggoobi revealed this while addressing Parliament's Public Accounts Committee, saying verification by the Auditor General found some claims lacked evidence.

"We are going to do very well in wiping out that portfolio... We have a good plan and starting next quarter, we are going to release money to pay those who have been certified as legitimate arrears," Ggoobi said.

Ggoobi disputed a Shs9.6 trillion figure cited by the committee, saying it's incorrect and the Auditor General will announce the accurate figure soon. He explained that at Shs200 billion per year, the government can clear the arrears in 48 years, but plans to do so in the medium term.

"The Shs200 billion is the money we had in the base... If we manage to get new resources, it is an area of priority," Ggoobi added.

Ggoobi said some Shs8.4 trillion in claims had no evidence, and the government is saving billions from these fake claims.