The Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has warned accounting officers across the country, urging them to ensure transparency and integrity in the management of Shs1.1 trillion allocated for the implementation of the Parish Development Model (PDM) in the Financial Year 2025/26.
Ggoobi made the revelation during the release of the budget execution circular for financial year 2025/26 on July 10, 2025.
“In the FY 2025/26, Government has provided Shs1,096.9 billion for PDM activities at the parish level,” Ggoobi said.
He added, “Shs1,059.4 billion will go directly into the Parish Revolving Fund, giving each parish Shs100 million to support organised households.”
The funds will also cover other critical PDM components. Ggoobi revealed that Shs5.297 billion has been set aside for loan processing costs at the SACCOs, allocating Shs500,000 per parish. An additional Shs4.237 billion will cater for withdrawal charges associated with PDM loans, with each parish receiving Shs400,000.
To ensure inclusivity, Shs4.654 billion will support Persons with Disabilities who access PDM loans. Administrative costs for Parish Development Committees will be covered under Shs10.594 billion, with each parish receiving Shs1 million. Furthermore, Shs12.712 billion has been allocated to facilitate monthly allowances of Shs100,000 for Parish Chiefs and Town Agents.
Ggoobi stressed that the funds must be used strictly according to the guidelines issued by the Ministry of Finance. He condemned all forms of corruption and illegal charges imposed on beneficiaries.
“The Parish Revolving Fund beneficiaries should not be charged any fees or forced to pay any money to access a loan,” Ggoobi warned.
He added, “Any person or government official involved in fraud, extortion or manipulation of the PDM processes contrary to the guidelines should be handled in accordance with the law.”
He reminded accounting officers to fill all parish chief vacancies without delay and ensure that eligible officers receive their monthly duty facilitation allowances promptly.
Ggoobi further directed that all Accounting Officers must submit detailed quarterly reports accounting for the use of PDM funds. These reports must trace the flow of public funds from all sources to activities under the respective sub-county departments and PDM pillars.
“Government has allocated funds to both Central and Local Governments for the provision of public goods and services at the lower local government level,” he stated. “These resources are intended to enhance service delivery through PDM structures, and proper reporting is not optional — it is mandatory.”
The Parish Development Model is Uganda’s flagship program for transforming the livelihoods of households still engaged in subsistence agriculture. The Finance Ministry’s latest funding and warnings come as part of efforts to protect the integrity and effectiveness of the initiative, and ensure no funds are lost through corruption or inefficiency.
