Government expenditure increases by 3.5 per cent

With government’s spending set to increase by 3.5 per cent from Frw589 billion to Frw604 billion the Ministry of Finance has reviewed the 2008 budget. Elias Bayingana, the National Budget Director while addressing the 7th Joint Budget Support and Public Financial Management Review (JBSR) meeting said most of the money is to be generated locally and from development partners. Parliament and cabinet are yet to approve the budget. In the draft, expenditure on the purchase of goods and services may increase from the original Frw76 billion to Frw78 billion. More money will be spent on schools and prison, according to the draft budget. While earthquake and identity card expenditures are expected to increase to Frw14.5 billion, net lending may grow by Frw1.9 billion especially due to stock replenishment. Bayingana said for the economy to grow, mainstreaming of externally financed budget execution and accelerating the implementation of projects has to be fast. Last year Rwanda’s economy recorded a Gross Domestic Product (GDP) growth rate of 6 per cent while inflation was registered at 9.1 per cent. National statistics indicate that external debt stock reached $576.6 million while domestic revenue increased by 13.8 per cent of the GDP. Ends

News

Government expenditure increases by 3.5 per cent