Minister of State for Finance, Planning and Economic Development (Planning) Amos Lugalubi said the government will now disburse money under the Parish Development Model (PDM) in installments due to cash flow issues.
On Tuesday, August 23, 2022, Lugalubi appeared before the Finance Committee chaired by Hon. Keefa Kiwanuka to respond to concerns over the suppressed budgets of ministries, departments and agencies among others.
According to the government, each of the more than 8,000 parishes is expected to receive Sh100 million this financial year, which will be disbursed through Savings and Credit Cooperative Organizations (SACCOS).
Members of the commission noted that when the government promised to send money to the parishes, the parishes have not yet received the money, and others have received less than what was promised.
According to Hon. Gerald Nangoli, Member of Parliament for Elgon North Constituency, Ugandans have waited in vain for money from PDM until the planting season has come and gone. He further said that although parishes were promised Sh17 million during the 2021/2022 financial year, some people only received Sh9.6 million.
AUDIO: Hon. Gerald Nangoli
“They could not use this money because the parish cannot divide the 9.6 million shiria between the parishes. Second, the information that you have reduced the amount that you promised people. Why don’t you give out this money, because now is the sowing season?” he asked.
In response, Lugalubi said that it was not true that the government had reduced the money under PDM, but only changed the payment methods.
Lugalubi says the government will provide Sh25 million this quarter and another Sh50 million in the second quarter, before finalizing an additional Sh25 million in the third quarter, for a total of Sh100 million this year.
AUDIO: Minister Amas Lugalubi
Regarding SACCOS that received less than Sh17 million, Lugalubi said those who received less will still receive the balance after their additional request is approved.
“The difference between what was received and the Shs17 million is something we are yet to release. “Unfortunately, this money has not been allocated and that means we have to come back here to get an additional Sh112 billion,” he said.
The deputies, however, were not convinced by the minister’s statement about the payment of funds in parts.
According to Hon. Nakaseke South MP Paulson Luttamaguzi handing out money in small chunks will not adequately serve the purpose. He says planting seasons are changing and the government needs to take notice.
AUDIO: Hon. Paulson Luttamagoozi
“There is no money – they can’t tell you that. You bring in the money in the off-season, and you bring it in bits and pieces; that’s what we don’t understand. If I tell you I’ll give you the cow and you bring the tail, does it matter?’ he asked.
Distributed by APO Group on behalf of the Parliament of the Republic of Uganda.
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