The Ugandan government, through the Ministry of Finance, has announced plans to release the third and fourth quarter funds allocated under the Parish Development Model (PDM) before the first planting season of 2024. The funds aim to support small-scale farmers, enabling them to invest in agricultural inputs such as seeds, fertilizers, agrochemicals, and land preparation in preparation for planting.
Finance State Minister (General Duties) Henry Musasizi revealed this information while addressing Parliament’s finance committee on January 5, 2024. The release of funds aligns with PDM’s Pillar 1, which focuses on production, storage, processing, and marketing of agricultural activities.
Musasizi further informed Parliament that the Ministry has already disbursed approximately 99% of the total budget of UGX 1.059 trillion to savings and credit co-operatives (SACCOS) under PDM. This financial support is part of the government’s efforts to implement PDM, which serves as the last-mile strategy for improving the incomes and welfare of households in Uganda.
The funds, posted directly to the bank accounts of SACCOS in all 176 local governments and Kampala Capital City Authority (KCCA), are expected to empower local communities and boost economic activities at the grassroots level.
Additionally, Musasizi shared other economic indicators, stating that the economy grew by 5.2% in the fiscal year 2022/23, up from 4.6% in the previous fiscal year. The Debt-to-GDP ratio reduced from 48.4% to 46.9%, indicating improved fiscal management.
He also highlighted a decrease in headline inflation, from a peak of 10.7% in October 2022 to 2.6% in December 2023. The domestic revenue-to-GDP ratio improved from 13.2% in FY 2021/22 to 13.9% in FY 2022/23, although still below the National Development Plan III target of 16%.
