The Ministry of Finance has said that the Parish Development Model (PDM) funds will be released in installments due to cash flow challenges.
Amos Lugoloobi (pictured), the Minister of State for Planning told Parliament’s Finance Committee on Tuesday that each of the parishes across the country is to receive 100 million Shillings this financial year 2022/2023 through Parish Savings and Credit Co-operative (SACCOS).
Lugoloobi had been invited before the committee to explain budget cuts to different Ministries, Departments and Agencies (MDAs), according to the releases in the first quarter of the financial year.
There are over 10,594 parishes in the country and the launch of the PDM programme also operationalized parish SACCOS through which people will be able to obtain financing for development. Currently, there are 8,333 registered Parish SACCOS.
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.
Lugoloobi said that it wasn’t true that government had reduced money under the PDM but that it was the payment method that had changed.
He said 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.
Earlier, MPs noted that several parishes have to date not received any money from the Ministry of Finance while others have received less funds. Gerald Nangoli, the Elgon North MP said that Ugandans have been waiting for money in vain
Luttamaguzi Ssemakula, the Nakaseke South MP said that giving money in installments would not adequately meet the purpose of the program.
Under the initiative, each parish was last financial year supposed to receive Shillings17 million with a plan to increase the money to 100 million in the current financial year.
-URN
