Ministry of Finance Explains Parish Development Model Payment Changes

The Ministry of Finance has explained that the release of the Parish Development Model (PDM) funds has suffered a temporarily set back due to cash flow challenges.

According to the Minister of State for Planning Amos Lugoloobi, the funds will be released in installments.

He was meeting members of the told Parliament’s Finance Committee to explain budget cuts to different Ministries, Departments and Agencies (MDAs) in the first quarter of the financial year.

MPs had complained that several parishes not received any money from the Ministry of Finance while others have received less funds.

Luttamaguzi Ssemakula, the Nakaseke South MP said that giving money in installments would not adequately meet the purpose of the program.

Lugoloobi informed  MPs  that each of the parishes across the country will receive 100 million Shillings this financial year 2022/2023 through Parish Savings and Credit Co-operative (SACCOS).

He dismissed claims that the government has reduced money under the PDM ,saying  it is the payment method that had changed.

He explained that in the first quarter, government was to release 25 million Shillings, 50 million in the second quarter and 25 million in the final quarter of the financial year.

Speaking about SACCOs that had received less than 17 million, the Minister said that these would still receive a top up through a supplementary budget of 112 billion Shillings that is to be submitted by government.

Under the initiative, each parish was last financial year supposed to receive 17 million shillings with a plan to increase the money to 100 million in the current financial year.

The Shillings 490 billion PDM replaced Emyooga, a presidential initiative on wealth and job creation which was rolled out in October 2020 to support among others, market vendors, welders, taxi drivers, boda-boda riders, women and restaurant owners who come together in form of  SACCOS.

It is an extension of the approach to development as envisaged under the National Development Plan III, with the parish as the lowest administrative and operational hub for delivering services closer to the people and hence fostering local economic development.