The government has revised its budget for the 2019-2020 fiscal year from Rwf2,876.9 billion announced last June, to Rwf3,017.1 billion the Minister of Finance and Economic Planning, Uzziel Ndagijimana said Monday.
“Government will raise its total spending by 140.1 billion Rwandan francs (about 145.9 million U.S. dollars). The expenditure envelope has been revised to reflect the changes under recurrent spending, capital expenditure and net lending outlays,” Ndagijimana said while presenting the revised draft budget proposal to Parliament in the capital Kigali.
The budget revision process was informed by the economic and budget performance for the first six months of 2019-20 fiscal year, he added.
Government projects domestic resources to increase by 75.7 billion Rwandan francs (about 78.8 million U.S. dollars) from 1,726.2 billion Rwandan francs to 1,801.9 billion Rwandan francs, he said.
The recurrent expenditure is expected to increase by 124.1 billion Rwandan francs from 1,424.5 billion Rwandan francs in the original budget, to 1,548.6 Rwandans francs, he added.
The expenditure increase is to cater for salaries for newly recruited health staff and promotion of medical staff, operationalization of the newly established embassies, community health-based insurance subsidies, milk support program under the National Early Childhood Development Program as well as planned international sports activities, Ndagijimana further explained.
Capital expenditure is expected to increase by 4.0 billion Rwandan francs from 1,152.1 billion Rwandan francs to 1,156.2 billion, according to the draft.
Net lending will increase by 13 billion Rwandan francs from original 244.1 billion Rwandan francs to 257.2 billion Rwandan francs, it showed.
The revised budget for 2019-20 is part of the revised medium term macro-economic framework that aims to continue the implementation of National Strategy for Transformation (NST1), the minister told the lawmakers.
Last June the government had expected to finance the 2019-20 budget through domestic resources worth 68.3 percent of the entire budget up from 67 percent in the 2018-2019 fiscal year budget.
The ministry of finance had also projected that the Rwanda’s economy would grow by 8.1 percent in 2020 and 8.2 percent in 2021 driven by agriculture and infrastructure.