KAMPALA, Uganda — Economic experts are warning that Uganda’s Parish Development Model (PDM), a key government initiative, is unlikely to significantly boost the nation’s economy. They argue its design focuses on consumption rather than production.

This critique emerged 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. The PDM is allocated UGX590 billion within the budget.

Hamza Ssali Mukasa, a senior manager in the Tax Department at Ernst & Young, stated the PDM “appears more as a consumption model than a production model.” He contended that while it might improve household well-being, “its value proposition for overall economic growth seems limited.” Mukasa suggested that for greater economic impact, the government should prioritize models that facilitate production, such as establishing industries.

Finance Minister Matia Kasaija, in his budget presentation on Thursday, positioned the PDM as central to monetizing Uganda’s economy. He noted that over 2.6 million Ugandans have accessed PDM funding for agriculture and microenterprises, with the system now digitized for transparency.

However, Mukasa also highlighted that many PDM beneficiaries from the previous fiscal year had not yet received their allocated funds, stressing the need for prompt disbursement.

While Robert Mbaziira, another senior tax manager at Ernst & Young, praised an additional UGX500,000 allocation for persons with disabilities under the PDM, the overall expert consensus suggests the program’s current framework may not achieve the desired broad-based economic transformation.