Rwanda’s next fiscal year’s budget is projected to increase by 228.7 billion Rwandan francs (about $238.3 million), according to Budget Framework Paper and midterm budget estimates presented to parliament on Thursday by Finance minister.
The government’s fiscal year 2020-21 total spending is projected at 3,245.7 billion Rwandan francs (about 3.3 billion U.S. dollars) which is 228.7 billion higher than revised budget estimates of 3,017.1 billion Rwandan francs, Finance Minister Uzziel Ndagijimana said.
Presenting to both chambers of Parliament the Budget Framework Paper and midterm budget estimates for 2020-21-2022-23, the minister explained that the expenditure is made up of recurrent expenditure of 1,582.8 billion Rwandan francs, capital spending of 1,298.5 billion Rwandan francs and net lending outlays of 306.5 billion Rwandan francs.
Budget for the fiscal year 2020-21 will reflect medium term fiscal path which allows for an increased spending to reach government’s National Strategy for Transformation goals while maintaining public debt at sustainable levels, he said.
Key priorities for the 2020-21 national budget include strengthening the health system, increasing agriculture and livestock productivity, scaling up social protection coverage, creation of employment opportunities, support to small and medium enterprises and large enterprises affected by COVID-19, he added.
Other interventions Ndagijimana highlighted will include support for production of Made in Rwanda products, promotion of digital technologies to improve service delivery, improving access to quality education, eradication of malnutrition and stunting as well as strengthening disaster preparedness and management.
He underlined the need for particular actions for quicker response as government continues to promote exports diversification and reduce exposure to external shocks and imbalances over the medium term, economic challenges posed by COVID-19 pandemic. In February the Rwandan government revised its budget for the 2019-2020 fiscal year from 2,876.9 billion Rwandan francs (about 3.1 billion U.S. dollars) announced last June, to 3,017.1 billion (about 3.143 billion U.S. dollars).