Shs100 million PDM cash earmarked for parishes

The Minister of State for Finance, Planning and Economic Development (Planning) Hon. Amos Lugoloobi, has revealed that some parishes will, in the Financial Year 2022/2023, receive more money than others under the Parish Development Model (PDM).

The minister made the revelation while presenting a statement to the House on the status of implementation of the PDM on Thursday, 11 August 2022.

In this financial year, each parish is expected to receive Shs100 million for disbursement through Savings and Credit Cooperative Organisations (SACCOS), compared to the Shs17 million that was allocated in the Financial Year 2021/2022.

According to Lugoloobi, 3,914 SACCOS under the PDM programme did not benefit from the Shs17 million allocated to parishes across Uganda as a revolving fund in the Financial Year 2021/2022.

He attributed this to non-readiness where the SACCOS did not register by 30 July 2022 but rather after the closure of the financial year; which prompted some of the revolving funds to be returned to the Consolidated Fund in accordance with the law.

He said the revolving funds that had been released to the local governments but were returned to the Consolidated Fund at the end of the Financial Year 2021/2022, will be provided to the respective parishes, upon validation of the PDM SACCOs registered.

“Additional funding shall be provided to ensure that each Parish/Ward receives the established shortfalls on the Shs17 million planned for the Financial Year 2021/2022, over and above the approved budget for the Financial Year 2022/2023,” Lugoloobi said.

He said that in the Financial Year 2021/2022, Shs139.38 billion out of the Shs234.3 billion appropriated by Parliament for PDM including supplementary funding was released, representing 60 per cent budget performance.

He added that a total of 8,267 PDM SACCOs had been registered by 31 July 2022, under the Registrar of Cooperatives under the Ministry of Trade, Industry and Cooperatives, representing 78 per cent.

The SACCOS are registered under the Cooperative Societies Act (as amended).

In the Financial Year 2022/2023, Parliament appropriated Shs1.142 trillion for the PDM programme, of which Shs1.059 trillion has been appropriated for the revolving fund.

Lugoloobi said that this allocation to the revolving fund that will serve 10,594 parishes across the country indicates that each parish will receive Shs100 million.

“These funds were appropriated to the Ministry of Finance, Planning and Economic Development, to enable direct disbursement of the revolving funds to the bank accounts of ready PDM SACCOS, upon validation and confirmation of the particulars of members,” the Minister clarified.

So far, Shs134.83 billion has been released in the first quarter of the Financial Year 2022/2023 for PDM activities, representing 11.81 percent.

Lugoloobi told the House that the finance ministry plans to release the parish revolving funds in two tranches - July and January, so that beneficiary households can plant their crops by the start of the two major rain seasons in most parts of the country.

While chairing the House, Deputy Speaker Thomas Tayebwa directed the Committee on Public Service and Local Government to update its report with figures presented in the statement, and present it before the House.

“The House gave the same assignment to the committee and their report is ready. I want the committee chairman to take this statement, update and bring it on the Floor next Wednesday for debate,” Tayebwa said.