Rwanda To Fund 66% Of Its Budget

Finance Minister, Claver Gatete has announced that Rwanda will finance 66% (Rwf1, 174.2 billion) of its budget for the financial year 2015/2016.

Gatete said that Rwanda’s budget has increased to Rwf1, 768.2 billion ($2.47billion) as total expenditure from Rwf1762.3 billion representing an increase of Rwf5.8 billion.

Minister Gatete said that the increase in domestic revenues (Rwf1, 174.2 billion or 66% of the budget) has increased by Rwf41.6 billion from Rwf1, 132.6 billion in 2014/15. External revenues will be Rwf594.0 billion (34%).

Notably, the country’s ability to fund its budget has been increasing year on year.

In 2012/13 budget, the country financed only 54% of Rwf1.3 trillion.

Last year’s budget, total domestic resources were Rwf1.08 trillion which accounted for 62% of the total budget, while external resources were Rwf667.6 billion, 38% of the total budget.

Rwanda’s Finance Minister Gatete Claver outside Parliament. The country is now able to fund 66% of its budget.

Meanwhile, the Minister told parliament that 51% (Rwf894.8 billion) of the domestic revenues will be generated from taxes while 12% (Rwf219.3 billion) will come from non-tax sources.

The government plans to borrow Rwf60 billion (3%) from domestic sources.

Of the external revenues, 20% (Rwf358.4 billion) will come from grants and 14% (Rwf235.7billion) will be external loans.

Infrastructure, energy and Agriculture prioritized

Minister Gatete told parliament that this year’s government spending will mainly focus on the country’s key development areas under its 5-year second phase of economic development and poverty reduction strategy (EDPRSII).

Rwf135 billion will be spent on energy to facilitate electricity roll-out for the country’s special economic zone.

Roads network will consume Rwf128.3 billion, while access to clean water in the capital Kigali and other areas of the country will consume Rwf34.2 billion.

Agriculture will take Rwf120.6 billion.

Meanwhile, other East African Community member states in which Rwanda belongs, read their budgets concurrently.

This year’s budget for Uganda is expected to be Shs24trillion ($5.9bn); Tanzania Tsh19.9trillion ($12.31bn) and kenya’s budget ksh 2.1 trillion is $21billion.

Source:KT Press