Rwanda’s budget for the fiscal year 2019/20 projected to increase from Rwf 2,585.2 billion in revised budget for the financial year 2018/19 to Rwf 2,876.9 billion in financial year 2019/2020, an increase of Rwf 291.7 billion.
Finance Minister Uzziel Ndagijimana told parliament on Monday that Rwanda’s spending could increase by about 25% to reach more than Rwf3,560.5 billion in financial year 2021/22.
Minister Ndagijimana presented to both chambers of parliament, the Budget Framework Paper (BFP) and the midterm budget estimates for 2019/20-2021/22.
He said the budget will reflect medium term fiscal path which allows for an increased spending to reach the National Strategy for Transformation (NST1) goals while maintaining public debt at sustainable levels.
In this regard, the proposed total resources estimated for fiscal year 2019/20 is made up of Rwf 1,726.2 billion of domestic tax and non-tax revenue, domestic borrowing of Rwf237.6 billion, Rwf 6.4 billion from net lending and payments, external grants of Rwf 409.8 billion and external loans of rwf497 billion.
Total tax revenue collections have been projected to reach Rwf 1,535.8 billion in the fiscal year 2019/20.
This amount will exceed the estimated figure of Frw 1,373.1 billion to be achieved in the fiscal year 2018/19 by Rwf 162.7 billion while Non-tax revenue collections to the Treasury have been estimated at Rwf 190.4 billion; which is Rwf7.9 billion, lower than the projected amount of Rwf198.4 billion in the fiscal year 2018/19.
Minister Ndagijimana told Parliamentarians that policies and strategies over the medium term are built on government’s ambition to raise Rwandans’ high living standards and reach the upper middle income status by 2035 and high income by 2050.
This is reflected in the blueprint of the Vision 2050 under development.
The National Strategy for Transformation (NST1), which has been developed as implementation instrument of the remainder of Vision 2020 and for the first four years of the Vision 2050, provides the direction of the policy objectives over the medium term.
Minister Ndagijimana noted that government will continue to promote import substitution and diversify exports with the aim of reducing the exposure to external shocks and imbalances over the medium term.
“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,” Minister Ndagijimana said.
Key targets and interventions will include growing traditional exports, promoting non-traditional exports, growth of the service sector as well as cross cutting interventions such as promotion of made in Rwanda, developing of cross border and trade logistics infrastructure and development of industrial parks among others.