For the first time in the country’s history, estimates show that the budget will total Frw 1.116 trillion compared to Frw 984 billion during the previous year.
Finance minister John Rwangombwa made the announcement yesterday when he read the first budget estimates for the year 2011/2012 before Parliament. The presentation was meant to seek opinions from parliamentarians before the final reading on June 8, this year.
“We have resources, we increased domestic revenues and this budget reflects the collective determination of the government to mobilise resources,” Rwangombwa said in an interview after the presentation.
Rwangombwa said that the priority areas include agriculture, trade and financial services. Revenues invested in productive capacities will increase from Rwf137.4bn to Rwf 199.7 billion in the upcoming budget, representing a 17.9 percent of the total budget. Other areas that recorded an increase in budget allocation include the human development and social sectors.
The minister said that the ministry is increasing resources to support the budget but there has also been consistency in terms of the support received from development partners at 41 percent of the total budget.
He attributed this to the country’s accountability on the funds donated by development partners. Development projects account for Rwf503 billion representing 40.9 percent of the budget compared to Rwf394b in the last financial year.
Development projects account for Rwf503 billion representing 40.9 percent of the budget compared to Rwf394b in the last financial year.
Rwangombwa further pointed out that tax revenues are projected to climb from 13 percent to 14.6 percent, while donor funding would decrease from 12.8 percent to 10.1 percent.
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