Finance Slashes Parish Development Model Funds to 200 Billion

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The Ministry of Finance has revised downwards the funds for parish development model from 490 billion shillings to 200 billion shillings.
State Minister for Planning David Bahati with the Budget Director in the Finance Ministry Kenneth Mugambe before parliament's Budget Committee.

Audio 5

 The planned parish development model will be implemented with much less funds as the finance ministry agreed to slash over 290 billion shillings from its budget. 

The government had intended to spend over 490 billion shillings on the model but it met resistance from members of Parliament.

  By Friday, Finance Minister, Matia Kasaija while appearing before Parliament’s Budget committee said he and his technocrats had decided to slash the huge portion of the fund’s financing in the coming financial year.  He said the new position follows concerns by Parliament.  

MPS opposed the 490 billion funding towards the Parish Model on account that the government was diverting funds which were meant for other affirmative action program like PRDP and Uganda Women Entrepreneurship Program (UWEP) among others.  

Kasaija in a press conference told journalists that he had reduced the amount tactfully looking at the resistance from members of Parliament.  

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State Minister for Planning , David Bahati said since they have now agreed with MPs, the funds will be indicated in the budget. He says that they will collect all data that is needed to make sure the program works, which is expected to take three months.

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Patrick Ocailap the Deputy Secretary to treasury says that the 200 billion shillings is what remains following the removal of funding like the Uganda Women Entrepreneurship Program-UWEP, Youth livelihood Fund,  Uganda Coffee Development Authority funding from the amalgamation and some funds of Peace Recovery and Development Plan (PRDP) and Luwero Rwenzori Development Program to create the parish model program.

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MPs had initially objected to the proposal saying 200 billion shillings was a lot for the start and piloting. James Waluswaka, the Bunyole West MP proposed that for study, reorganization and preliminary stages Finance should be given 50 billion shillings.

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However, this was overruled by the chairperson Amos Lugolobi who asked the committee to return back with a plan before they approve the funds.  

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The model is a strategy being fronted by the Government in the next financial year for organizing and delivering public and private sector interventions for wealth creation and employment generation at the parish level as the lowest economic planning unit.

The program will see each of the 10,594 parishes get 39 Million Shillings in a revolving fund. The program like many others before is intended to lift Ugandans out of subsistence economy to the money economy, but this time around, new Parish Chiefs will be hired to manage the Fund.