{{An extra Frw200Billion will be needed to fund activities of government in 2013/2014 fiscal year.}}
In the previous fiscal year, Government expended Frw1.4trillion However, this 2013/2014 fiscal year, government will require about Frw1.6trillion for its expenditure.
The permanent secretary in the Ministry of Finance and Economic Planning, and Secretary to the Treasury, Pichette Kampeta Sayinzoga made the announcement while briefing Journalists on the 2013/2014 Budget Framework Paper that was approved by the Cabinet on Wednesday.
The framework indicates that in spite of the decrease in foreign aid budgetary support, there was an increase in capital grants and taxes that will fund government’s projects.
The minister in charge of Cabinet Affairs, Protais Musoni, said the budget framework was presented against the backdrop of continued challenges in the global economic environment, which the national economy had withstood.
“The 2013/2014 fiscal year budget is consistent with the medium-term framework. It takes into account the lower budget support funds than we previously expected through adjustments in spending allocations,” Musoni said.
“The main objective of this budget, especially in the face of declining aid, is to increase domestic tax revenue collections by 0.2% of GDP and limit the domestic debt to 0.6% of GDP.”
Sayinzoga added that although Rwanda experienced shocks presented by delayed donor disbursements in budget support, government adopted tight fiscal and monetary measures to cut domestic spending and contain inflation.
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