KIGALI - The Ministry of Finance and Economic Planning is today expected to sign an agreement with seven of Rwanda’s budget support partners where the donors will be commit $338.3 million (approx. Rwf 191bn) as budget support to the 2010/11 fiscal year.
A joint statement released ahead of the signing by the Ministry of Finance and Budget Support Harmonization Group indicates that the funds will support the implementation of the Economic Development and Poverty Reduction Strategy (EDPRS).
Dr. Heike Henn Head of Development Cooperation at the German embassy and Co-Chair of the Donor group will sign the agreement on behalf of the partners.
“Having received the official commitment today, the government of Rwanda can fully program all budget support contributions into national budget in due time because the announcements are made prior to the preparation of the national budget for the next fiscal year,” read the statement.
The budget for 2010/11 comes from the African Development Bank ($59.4m), the European Commission ($ 75.2 m), Germany ($14.7 m), the United Kingdom ($68.2 m) and the World Bank ($91 m).
Belgium will contribute $3.9 million and the Netherlands 25.9 million coming in form of sector budget support and most of the funding will be front-loaded in the first two quarters of the 2010/11.
General budget support is where aid is channeled directly through the recipient Government’s treasury for co-funding of the national budget and used for general public spending across all sectors while sector budget support is channeled to specific sectors.
“When providing budget support, the overall objective of development partners is to contribute to the elimination of poverty in Rwanda.”