Rwanda will increase its spending from Frw2.1 trillion last year to Frw2.4 trillion.
The proposed budgeted presented by new Finance Minister, Uzziel Ndagijimana, will be financed by Frw1.5 trillion domestic revenues (both tax and non tax) representing 62% of the total 2018/19 budget.
The remainder will be mobilised from development partners, grants and loans.
External Grants are estimated at Frw 396.3 billion equivalent to 16% of total budget while external loans are projected at Frw 400.9 billion representing 16% of total budget.
Minister Ndagijimana told Parliament on Monday afternoon that in his budget, he will only borrow Frw 137.7 billion from the domestic market, representing 6% of total budget.
On the expenditure front, the Minister said that the recurrent budget is projected at Frw 1,305.7 billion
He will allocate Frw 897.1 billion for development and net lending at Frw 190 billion which will be used to finance key government projects such as construction of Bugesera airport, expansion of Rwandair operations among others.
The implementation of Made in Rwanda policy will continue to play a key role in narrowing the current account deficit in the short to long run and help to consolidate private sector domestic activities, create jobs and boost economic growth, he said.
Minister intends to cut down import and focus on diversification of exports with the aim of reducing the exposure to external shocks and imbalances over the medium term.
His spending approach, he said, is reflected in the blue print of the Vision 2050, the seven year Government Program and National Strategy for Transformation which has been developed as implementation instrument for the remainder of Vision 2020 and the first four years of Vision 2050.
Policies and strategies over the medium term are built on Government’s aspiration to transform Rwanda into high-income economy and ensure high living standards of Rwandans by the middle of the 21st century.