There should be more emphasis on supporting small businesses to recover from the devastating impacts of the Covid-19 pandemic, economic experts have said, with parliament set to pass the national appropriation bill for 2021/22 fiscal year later Monday. The Minister for Finance and Economic Planning, Uzziel Ndagijimana, presented the Rwf 3,807 billion budgetary proposals for the next financial year to both chambers of parliament on Tuesday, June 22. The budget seeks to inspire recovery from the pandemic, with the government tipping manufacturing, agriculture and construction sectors to drive much-needed rebound in economic activity in the near future. “At the moment,” Teddy Kaberuka, an economist based in Kigali, said, “the recovery fund seems to be focusing mainly on the big companies, big hotels, yet the businesses that took the biggest hit from the pandemic are small businesses like shops and motels.” He reckoned that there is need to pay greater attention to small business operators to ensure a more equal recovery effort. But he noted the budget caters for the most important sectors, including the health sector with the government planning to spend big on vaccines, which Kaberuka said was an important factor in the country’s bid to bounce back from the pandemic. Angelo Musinguzi, a tax expert, welcomed the fact that, despite the pandemic, the government continued to prioritise sectors that help position the country as a regional hub. Both Musinguzi and Kaberuka also singled out the fact the new budget proposed no tax increase yet it still represents an increase from the previous government spending. “The sectors with the most potential to fund the budget include the consumer industry, banks and telecommunication companies,” said Musinguzi, adding that these sectors performed relatively well compared to tourism and hospitality over the last one year.
