Uganda’s Parish Development Model (PDM), a flagship socio‑economic initiative launched to empower grassroots communities, is transitioning from initial capitalization to an expanded Sustainability and Acceleration Phase, a change that carries important budgeting responsibilities for local governments ahead of the FY2026/27 national budget cycle.

According to the Secretary to the Treasury, Keith Muhakanizi Ggoobi, the government has so far invested a substantial UGX3.788 trillion into the PDM since its roll‑out beginning 1st July 2021. This capital injection has supported the establishment and capitalization of 10,589 eligible PDM Savings and Credit Cooperative Organisations (SACCOs) across Uganda, laying the foundation for community‑led financial inclusion and economic participation.

“Since 1st July 2021, Government has capitalized 10,589 eligible PDM SACCOs to a tune of UGX3.788 trillion and is now moving into the Sustainability and Acceleration Phase, to be undertaken on a village‑by‑village basis,” Ggoobi stated in the latest Budget Call Circular.

This next phase is designed to build on the initial PDM roll‑out by deepening economic activities, ensuring that households and communities can sustainably increase production, access markets, and improve livelihoods through structured support under the Extension, Production and Marketing grants.

With this shift, the Ministry of Finance is urging Local Government Accounting Officers to comprehensively budget for all PDM activities under the Sustainability and Acceleration Phase. These include key operations such as compiling SPEAR (Situation, Problem, Evidence, Area of focus, and Response) reports and developing Parish Action Plans — strategic tools for targeting interventions and tracking progress, which should be funded through the Discretionary Development Equalization Grant (DDEG).

The call for meticulous budgeting comes alongside a significant revision of Uganda’s national budget for the 2026/27 financial year, with the resource envelope now projected at UGX78.249 trillion, an increase of over UGX8.8 trillion from earlier projections. While this signals greater fiscal space, the Ministry has emphasized strict adherence to the updated budget ceilings, noting that they are hard limits with no opportunity for post‑submission adjustments.

Secretary Ggoobi urged all Accounting Officers to exercise strategic allocation and efficiency, noting that the success of government programmes like the PDM is closely tied to disciplined planning and execution of allocated resources.

Beyond PDM budgeting, the Budget Call Circular also highlighted broader expectations for public finance management, including stronger internal controls, compliance with audit recommendations, and enhanced accountability mechanisms for officers responsible for spending public funds.

As Uganda prepares for the FY2026/27 financial year, the alignment of local budgeting for PDM activities with overall national fiscal planning underscores the government’s intention to ensure that community‑level interventions are fully resourced and integrated within the country’s broader development agenda.