Uganda’s Parliamentary Committee on Finance, Planning and Economic Development has called for an urgent review of the Parish Development Model (PDM) funding structure, citing concerns that its uniform allocation approach risks undermining the programme’s effectiveness in addressing poverty across the country.
The committee’s report, presented during plenary on Thursday, 16 April 2026 and chaired by Speaker Anita Annet Among, highlighted that the current model allocates a fixed Shs100 million to each parish without accounting for significant disparities in population size, land area, and poverty levels. Committee chairperson Hon. Amos Kankunda warned that this uniform distribution results in unequal financing per capita and per poor person, potentially spreading resources too thinly and weakening impact in high-poverty areas.
According to the committee, the PDM—launched in 2022 to transition subsistence households into the money economy through parish-level planning and revolving development funds—fails to align resource distribution with actual need despite the government possessing sufficient data, including the 2024 National Housing and Population Census, to design a more targeted allocation formula based on poverty levels, population size, and vulnerability indices.
The MPs recommended that the Ministry of Finance, Planning and Economic Development revise the PDM funding formula to reflect these disparities and present a revised model before the 2027/28 financial year, complete with simulations showing redistribution effects. They also urged the government to strengthen interim support measures, including extension services and financial literacy programmes, particularly in poorer parishes.
In addition to concerns about the PDM, the committee report raised alarms over a sharp rise in domestic debt roll-overs, warning that the government is increasingly borrowing to repay maturing obligations. Kankunda stated that domestic refinancing is projected to rise from about Shs10 trillion to nearly Shs14 trillion in the 2026/27 financial year, signalling mounting pressure on public finances and raising serious concerns about sustainability.
He noted that although domestic revenues are projected to increase from Shs37.2 trillion to Shs44.1 trillion, a growing share is being absorbed by debt servicing costs, reducing fiscal space for key programmes. “As domestic debt expands, interest payments are also increasing significantly, which reduces the fiscal space available for priority programmes,” Kankunda said.
The committee recommended improved debt management strategies, including reducing reliance on short-term domestic borrowing, extending debt maturities, and strengthening domestic revenue mobilisation. It also highlighted inefficiencies in externally financed projects such as Generating Growth Opportunities and Productivity for Women Enterprises (GROW) and Investing in Infrastructure and Tourism for Economic Transformation (INVITE), noting delays in implementation and low absorption of funds, which continue to attract commitment fees.
“We continue to incur unnecessary costs due to delayed utilisation of funds. This calls for improved project readiness and execution before loans are contracted,” Kankunda added.
The committee further flagged non-compliance with gender and equity requirements by some government entities, recommending stricter enforcement measures, including withholding budget approvals for non-compliant institutions. Speaker Among referred the committee report to the Committee on Budget for consideration.
The Parish Development Model remains a cornerstone of Uganda’s strategy to reduce poverty and transition households from subsistence to market-oriented production. Under the model, each parish receives funding to support enterprise development, agricultural productivity, and access to financial services through revolving funds managed at the local level. However, critics argue that the one-size-fits-all funding approach overlooks the varying capacities and needs of parishes, particularly those with larger populations or higher poverty concentrations.
Verification from official sources confirms that the 2024 National Housing and Population Census provides detailed demographic and socioeconomic data that could inform a more equitable allocation mechanism. The census, conducted by the Uganda Bureau of Statistics, includes indicators such as household size, access to basic services, and poverty status, which are essential for designing needs-based funding formulas.
Regarding domestic debt trends, the Ministry of Finance, Planning and Economic Development has previously reported rising debt service obligations as a share of the national budget, driven by both maturing domestic securities and persistent fiscal deficits. While specific projections for the 2026/27 financial year were cited in the committee report, these figures align with broader concerns about debt sustainability raised in recent budget speeches and fiscal strategy documents.
The committee’s call for a revised PDM funding structure reflects growing recognition among policymakers that effective poverty reduction requires targeted interventions tailored to local conditions. By leveraging existing data systems, Uganda has the opportunity to enhance the impact of its flagship development programme while addressing longstanding concerns about equity and efficiency in public resource allocation.
As the debate over the PDM’s future unfolds, stakeholders including local government officials, civil society organisations, and development partners will be watching closely to notice whether the Ministry of Finance adopts a more nuanced approach to funding distribution. Any revisions to the model will need to balance administrative simplicity with the imperative of directing resources where they are needed most.
The next step in the process involves the Committee on Budget reviewing the Finance Committee’s recommendations before any potential changes to the PDM funding formula can be considered for inclusion in the national budget framework. Officials have indicated that further consultations with parish-level stakeholders and technical experts will be necessary to design a credible and implementable alternative allocation formula.
For readers seeking official updates on the Parish Development Model and related fiscal policies, the Ministry of Finance, Planning and Economic Development regularly publishes budget framework papers, policy statements, and progress reports on its website. The Uganda Bureau of Statistics also provides access to census data and other socioeconomic indicators that inform national planning efforts.
As Uganda continues to grapple with the dual challenges of poverty reduction and debt sustainability, the outcome of this parliamentary review could have significant implications for the effectiveness of its flagship development programme and the credibility of its public financial management systems.
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