KAMPALA, Uganda — Ugandan economic experts are criticizing the government’s Parish Development Model (PDM), arguing that its current structure as a “consumption model” limits its potential to drive significant economic growth.
The concerns were raised Friday during a post-budget dialogue hosted by Ernst & Young in Kampala, following the unveiling of Uganda’s UGX72.136 trillion national budget for the 2025-2026 fiscal year.
Hamza Ssali Mukasa, a senior manager in the Tax Department at Ernst & Young, stated that while the PDM, which has been allocated UGX590 billion in the new budget, might improve household well-being, “its value proposition for overall economic growth seems limited.” He suggested that for a greater economic impact, the focus should shift to models that foster production, such as establishing industries that create jobs for youth.
Finance Minister Matia Kasaija, in his budget presentation on Thursday, highlighted the PDM as a key initiative to fully monetize Uganda’s economy. He noted that over 2.6 million Ugandans have accessed PDM funding for agriculture, livestock, poultry, and microenterprises, with the system now digitized for transparency.
However, Mukasa also pointed out that many PDM beneficiaries from the previous fiscal year had not yet received their allocated funds, stressing the need for prompt disbursement.
Robert Mbaziira, another senior tax manager at Ernst & Young, offered a more positive view of the PDM, specifically praising an additional UGX500,000 allocation for persons with disabilities, calling it a “crucial consideration and…the biggest positive change” in the budget.
Despite some positive aspects, the expert consensus at the dialogue suggested that without a clear shift towards productive investments, the PDM’s substantial funding may not achieve the broad economic transformation the government intends.
