Economic transformation has been allocated the lion’s share of Rwanda’s 3,245.7 billion Rwandan francs (about 238.3 million U.S. dollars) in the 2020-2021 fiscal year budget, read by the Minister of Finance and Economic Planning on Monday.
Economic transformation pillar will take 1,802 billion Rwandan francs, representing 55.5 percent of the total budget, Minister Uzziel Ndagijimana said while presenting the national budget to both chambers of Parliament in the capital Kigali. The next fiscal year will start on July 1.
Social transformation will take up 960.4 billion Rwandan francs or 29.6 percent while transformational governance was allocated 482.7 billion or 14.9 percent of the total budget, he said.
Next fiscal year’s budget increased by 228.6 billion, compared to 3,017.1 billion in the 2019-20 revised budget, according to the minister.
Government’s expenditure policies in fiscal year 2020-21 are guided by the National Strategy for Transformation priorities and objectives aimed to build economic resilience, he explained.
The 2020-21 fiscal year budget will be financed through domestic resources worth 1,969.8 billion Rwandan francs, representing 60.7 percent of the entire budget, he said.
Ndagijimana also said the remainder of the budget will be funded through external sources worth 1,275.9 billion Rwandan francs which accounts for 39.3 percent of the total budget.
The external sources include grants worth 492.5 billion and loans worth 783.4 billion, he said.
Recurrent expenditure will take up 1,583.0 billion Rwandan francs, accounting for 48.8 percent of the total budget while development projects are projected to consume up to 1,298.5 billion, which represents 40 percent of the total budget, Ndagijimana said.
Domestically financed projects are estimated at 703.4 billion Rwandan francs, while externally financed projects are projected at 595.1 billion, he said.
The minister cited strengthening health system by increasing accessibility to quality health services for all, support to businesses affected by COVID-19 to recover, and support to Made in Rwanda policy to reduce trade deficit, among the priorities that formed the basis of next year’s budget allocation.