budget
budget

The Rwandan government plans to spend 2.5 billion U.S. dollars in fiscal year 2015/16, representing 8.1 million U,S. dollars increase compared to the 2014/15 revised budget.

budget
budget

Rwanda’s Minister of Finance and Economic Planning Claver Gatete presented the budget to parliament on Thursday in Kigali.
The government will finance 66 percent of its budget through domestic resources amounting to 1.6 billion U.S. dollars, indicating an increase of 58 million U.S. dollars compared to the domestic revenues in the 2014/15 revised budget.
Over 56.3 million U.S. dollars increase in domestic revenues composed of tax and non-tax revenues while domestic borrowing is expected to increase by 84.5 million U.S. dollars.
External resources are estimated at 836 million U.S. dollars representing a reduction of 50.4 million U.S. dollars. Grants in 2015/16 budget are estimated at 504.6 million U.S. dollars indicating 82.8 million reduction while external loans will increase by 32.3 million to 331.9 million U.S. dollars.
Addressing members of both chambers of Parliament, Gatete said; “Fiscal consolidation through increased revenue mobilization and expenditure prioritization remains the key objectives of his government in the medium term.”
Donor support grants are projected to reduce to 5.7 percent of GDP in 2015/16.
The 2015-16 budget puts special focus on infrastructure development and export promotion and hence the theme: “Infrastructure Development for Social and Economic Transformation. ”
In a statement, the minister said government has based its expenditure projections on priority areas under the development blueprint-the Economic Development and Poverty Reduction Strategy (EDPRS 2) and the identified sector priorities.
“To strengthen the linkage between institutional plans and budgets and ensure their alignment to the priorities highlighted in EDPRS2, planning consultations were organized and successfully concluded in February 2015. This provided orientation to resources allocation,” it said.
Government merging priorities under EDPRS 2 are grouped under four thematic areas of Economic transformation for rapid growth, Rural Development, Productivity and youth employment creation as well as Accountable Governance. These were allocated 50% of the total budget.
Foundational Issues reflect long-term priorities where, in most cases, significant progress was made during EDPRS1 but form the platform for Rwanda’s sustainable development, according to the statement.
These were allocated 38 percent of the budget.
The support function focuses on the provision of economical, efficient and effective support services was allocated 12 percent of the budget.
Infrastructure will take the lion’s share of the 2015/16 budget with an estimated 419.7 million U.S. dollars.
This will be spent on rehabilitation of hydro power plants, development of peat power plant, electricity access roll our program, construction, development of industrial parks and access to clean water in Kigali and other districts with low water access rates among others.
Agriculture has been allocated 169.8 million U.S. dollars which will be spent on key areas such as priority crop intensification, second phase of rural sector support project, hill side irrigation and water harvesting, livestock infrastructure program, National strategic food reserve and pro-harvest, agribusiness project and rehabilitation of roads and feeder roads to provide access to markets.
Minister Gatete told lawmakers that the country’s macro- economic program and the budget have been formulated against several challenges both domestic and global. Enditem

-Xinhua

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