The main impact of the current global financial and economic crisis on the economy is expected to reduce the demand for exports
Constance Mukayuhi Rwaka the Chairperson of the parliamentary Committee on Budget and National Patrimony has said that the new 2009/10 budget read on Thursday, will be implemented according to the allocations.
Reacting on the new budget read together with those of other East African Community (EAC) states Mukayuhi said that her team will make a field visit to all institutions that have been allocated money from the national budget, to verify if the allocated money is the one disbursed.
Mukayuhi whose committee is in charge of scrutinizing and overseeing the implementation process of the budget said she was impressed with the budget because it places measures to mitigate effects of the prevailing global financial crisis.
“This means that there is growth in our economy regardless of the global recession,” Mukayuhi said.
Finance and Economic Planning Minister James Musoni while reading the budget told members of parliament, on Thursday that the main impact for Rwanda of the current global financial and economic crisis are expected to reduce the demand for exports such as tea and coffee.
He also said that because of the spills of the crisis treasury expected reduction in income and revenues from tourism and a possible reduction in aid flows as western government reduce their spending. Some of the measures government is undertaking to mitigate the effects includes revising of home grown policies.
Minister Musoni said that donor and government funds shall continue to be committed to expenditure plans to allow much needed fiscal stimulus to the economy. He also said that there will be increase in domestic production of power which should reduce unit cost of electricity for all producers.
The budget committee chairperson said that as an overseer, her team will make sure the budget allocations to the different institutions will execute what it is supposed to do and that the money will make sure it reaches the beneficiaries.
According to Mukayuhi, during the field visit a team from the parliament will also highlight problems that arose after the allocation of the money, like expense incurred to mitigate effects caused by natural hazards, which may need special attention.
She urged the key budget implementers including accounting officers to have a full package of four disciplines if the budget is to be implemented accordingly.
“The package includes commitment, integrity, accountability and transparency. If the package is considered it will in return give value for money which is the ultimate objective,” she said.
“We are not 100 percent independent when it comes to financing our budget, and any additional funds that come in, in the course of implementation, it should be shared,” she added.
Mukayuhi said that government may negotiate additional resources in the middle of the year either as grants or loans.