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The finance state minister Henry Musasizi has said that the Parish Development Model (PDM) and Emyooga have played a role in boosting the economy.

The PDM is a multi-sectoral strategy where the government plans to use parishes as the epicentre for development by channeling funds to the communities to transform the 39% of households out of the subsistence economy into the money economy.

The minister on Tuesday, March 19, 2024, appeared before the Parliament Committee on National Economy to discuss the performance of Uganda's economy and the state of indebtedness.

The Committee was assessing the state of the national economy and indebtedness to improve the economy.

The minister said the economy continued to strengthen in the first six months of FY 2023/24, fueled by the Government’s ongoing efforts to support growth and the significant boost in business activities.

“Parish Development Model and Emyooga, alongside accessible funding from Uganda Development Bank have played a pivotal role in this upward trend. The Gross Domestic Product is projected to grow by 6% in FY 23/24, higher than the growth of 5.2% registered the previous fiscal year," he said.

The Minister said total public debt stock as of the end of June 2023 was sh86.78 trillion and out of this, government securities accounted for sh34.57 trillion and external debt was sh52.21 trillion.

He also said the drivers of public debt include rising expenditure requirements and higher interest rates on borrowing.

To maintain debt sustainability over the medium term, the minister said the government will increase domestic revenue collections, increase efficiency and effectiveness of expenditure & support private sector growth.