Wealth creation to receive Shs11 trillion in new budget

The Government has invested close to Shs11 trillion in wealth-creation initiatives aimed at transforming households, farmers, youth, women and businesses; the Ministry of Finance, Planning and Economic Development has announced.

Presenting the National Budget for the 2026/27 financial year at Kololo Ceremonial Grounds on Thursday, Finance Minister Henry Musasizi said the interventions are reducing barriers to economic participation and creating opportunities across the country.

At the centre of the government’s strategy is the Parish Development Model (PDM), which Mr Musasizi described as the most significant programme for eliminating subsistence living and expanding participation in the money economy.

“PDM is not merely a financing programme. It is a structural transformation programme. Its objective is to move households from subsistence to commercial production; from survival to enterprise; and from poverty to prosperity,” he said.

According to the minister, the Government has transferred Shs4.4 trillion to all 10,589 parishes across the country over the past five years as revolving capital. By the end of June, the programme is expected to have reached more than four million beneficiaries.

Mr Musasizi said the initiative is already improving household incomes, strengthening food security and creating local economic opportunities for Ugandans who previously depended on subsistence farming.

The next phase of the PDM will focus on increasing productivity, promoting value addition and improving market access for beneficiaries.

“My Ministry will seek policy guidance to ensure that underserved and densely populated parishes, particularly in urban areas, receive adequate funding,” he said. “We will also begin a gradual transition from Government transfers to a self-sustaining financial ecosystem, ultimately a PDM Bank, supported by strong repayment performance, governance and value-chain development.”

Beyond the PDM, the Government has continued to finance a range of wealth-creation funds and enterprise support programmes.

Under Emyooga, the Government has injected Shs760 billion in revolving funds, leading to the establishment of 7,148 SACCOs with more than 2.48 million members. The programme has accumulated savings of Shs95.3 billion, and an additional Shs100 billion has been earmarked for the 2026/27 financial year.

The iKatale Loan Facility, launched through the Microfinance Support Centre, is providing affordable working capital to market vendors and informal urban traders. The facility is currently being piloted in six major markets in the Ka