The Minister of Finance and Economic Planning on Tuesday presented a Budget Framework Paper for fiscal year 2019-20 to Parliament, indicating that Rwanda’s budget is projected to increase by Rwf291.7 billion compared to current fiscal year ending in June.
The budget envelope is projected to increase from Rwf2,585.2 billion in revised budget for fiscal year 2018-19 to Rwf2,876.9 billion in 2019-2020 fiscal year, according to the budget framework paper presented to both chambers of Parliament by minister Uzziel Ndagijimana.
The proposed total resources estimated for fiscal year 2019-20 stands at Rwf1,726.2 billion of domestic tax and non-tax revenue, the framework paper shows.
External grants are expected at Rwf409.8 billion while external loans are expected at Rwf497 billion, it shows.
Total tax revenue collections have been projected to reach Rwf1,535.8 billion in the fiscal year 2019-20, according to the framework paper.
This figure will exceed the estimated amount of Rwf1,373.1 billion to be achieved in the fiscal year 2018-19 by Rwf162.7 billion.
Ndagijimana said the budget for the fiscal year 2019-20 will reflect medium term fiscal path which allows for an increased spending to reach the National Strategy for Transformation goals, while maintaining public debt at sustainable levels.
Government policies and strategies over the medium term are built on its ambition to raise Rwandans’ high living standards and reach the upper middle income status by 2035 and high income by 2050, according to the minister.
The minister also said efforts will be put in increasing the capacity of the Export Growth Facility, and value addition on export goods such as coffee, tea and fruits in order to boost the country’s exports and local production.