MPs push review of PDM funding formula

• MPs want the PDM funding formula changed to reflect population and poverty differences.

• Equal funding of Shs100 million per parish is seen as unfair and ineffective.

• Rising domestic debt and borrowing to repay loans is raising concern.

• Delays in projects and weak compliance with equity rules remain key issues.

Parliament has called for an urgent review of the funding structure of the Parish Development Model (PDM), warning that the current system could weaken its impact.

The concern was raised on April 16, 2026, during a plenary sitting chaired by Speaker Anita Annet Among.

The PDM, introduced in 2022 to move households from subsistence to the money economy, gives each parish Shs100 million for production and enterprise support.

However, the Committee on Finance, Planning and Economic Development said this equal distribution ignores key differences between parishes.

Committee chairperson Amos Kankunda told Parliament that parishes vary in population, land size and poverty levels.

He said treating them as similar leads to unfair distribution of funds. As a result, some areas receive less support per person, especially those with higher poverty.

Kankunda warned that while the model is easy to implement, it spreads resources too thinly. He said this limits the programme’s ability to deliver strong results in the most vulnerable communities.

The committee noted that government already has enough data, including the 2024 National Housing and Population Census. It said this data can guide a better system that considers population size, poverty levels and vulnerability.

MPs asked the Ministry of Finance to revise the funding formula and present a new model before the 2027/28 financial year.

They want clear projections showing how resources will be redistributed. They also urged government to improve support services such as extension work and financial literacy, especially in poorer areas.

The report also raised concern about rising domestic debt. Kankunda said government borrowing to repay existing loans is increasing. Domestic refinancing is expected to rise from about Shs10 trillion to nearly Shs14 trillion in the 2026/27 financial year.

He warned that growing debt is putting pressure on public finances. Although domestic revenue is expected to rise from Shs37.2 trillion to Shs44.1 trillion, more money is going to debt servicing. This leaves less funding for key programmes.

The committee called for better debt management. It urged government to reduce reliance on short-term borrowing, extend repayment periods and improve revenue collection.

It also flagged delays in projects funded by external loans, such as GROW and INVITE. MPs said slow implementation leads to extra costs, including commitment fees on unused funds.

The committee further noted that some government bodies are not following gender and equity rules. It recommended stricter enforcement, including withholding budgets for those that fail to comply.

Speaker Among referred the report to the Budget Committee for further review.