Rwanda’s development partners have announced a $335.4 million direct budget support for 2010/11 financial year representing a 21 percent rise in donor disbursements.
The increase in donor support is perhaps not the key highlight here.
What is striking is the timing with which this commitment has been made, coming almost seven months ahead of the reading of the 2010/11 budget.
What this means for government is that it can fully plan ahead for the budget, well aware of the resources development partners will provide and design, early enough, strategies of increasing domestic financing to meet the deficit.
Interestingly, donor s also promised that most of the funding will be front-loaded in the first two quarters of the FY 2010/2011, a promise, if kept, should be music for the exchequer.
Announcing these commitments well ahead of budget reading , sets the government planning machinery rolling and most certainly will go a long way in cutting down on poverty levels.
Providing these indicative commitments gives the government a better picture on the scope of policies to implement and actions to take considering the unstable financial environment brought about by the global financial crisis.
As Rwanda welcomes this partnership, the donors should be rest assured that each and every dollar sent will be put to proper use, given the premium Rwanda places on transparency and accountability.
The strides made in these areas of governance should form the core principles for this positive engagement with the donor community.
But again, as Rwanda welcomes this positive engagement, the resolve to have our national budget financed fully by domestic resources is one struggle for which we should not lose focus and momentum.