KAMPALA, July 11, 2025 – – The Permanent Secretary, Ministry of Finance, Planning and Economic Development and Secretary to Treasury , Ramathan Ggoobi says his ministry has released Shs 1.097 trillion to support the implementation of the Parish Development Model [PDM] in the 2025/26 financial year [FY].
Ggoobi made the announcement yesterday at the Ministry of Finance headquarters in Kampala while releasing the budget execution circular for the new FY.
The funding, aimed at enhancing service delivery and eradicating poverty at the grassroots, includes allocations for parish revolving loans, administrative support, and facilitation of key actors at the local level.
“For FY 2025/26, the Government has allocated Shs 1.0969 trillion for PDM activities at parish level,” Ggoobi stated.
Of this, Shs 1.0594 trillion will be channelled directly into the Parish Revolving Fund, providing every parish in Uganda with Shs 100 million to lend to organised households for investment in enterprises like piggery, poultry, fish farming among several others.
He further explained that Shs 5.297 billion has been set aside for loan processing costs for the PDM SACCOs, with each parish receiving Shs 500,000. An additional Shs 4.237 billion will cover withdrawal charges associated with the PDM loans, equivalent to Shs 400,000 per parish. A total of Shs 4.654 billion has also been allocated to support persons with disabilities who receive PDM loans.
To support administrative functions, Shs 10.594 billion has been earmarked for costs incurred by Parish Development Committees [PDCs], with each parish receiving Shs 1 million. Additionally, parish chiefs and town agents will each receive a monthly facilitation allowance of Shs 100,000 under a Shs 12.712 billion allocation.
Ggoobi issued a stern warning against corruption in the handling of PDM funds, particularly at the local level.
“Beneficiaries of the Parish Revolving Fund must not be charged any fees or coerced into paying to access loans,” he warned. “Any individual or government official involved in fraud, extortion, or manipulation of the PDM processes, contrary to the set guidelines, will be dealt with according to the law.”
He also reminded Accounting Officers to adhere strictly to the issued guidelines and circulars in implementing PDM activities. He instructed that all vacant Parish Chief positions must be filled promptly and that eligible officers should receive their facilitation allowances without delay.
Ggoobi emphasised the need for transparency and accountability, noting that resources had been allocated to both Central and Local Governments to enhance service delivery at the lower local government level. These resources are intended to strengthen the performance of the various PDM pillar structures.
“From FY 2025/26 onwards, all Accounting Officers are required to monitor and report on the use of funds in Lower Local Government units through their quarterly reports,” he said. “These reports must track the flow of public funds from all sources to activities under the relevant sub-county departments and PDM pillars.”
His remarks reaffirm the Government’s commitment to transforming subsistence households into income-generating participants in Uganda’s economy. Ggoobi’s warning is a clear signal that accountability and grassroots service delivery must now be prioritised by all stakeholders involved in the PDM.
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