KIGALI - The midterm budgetary review was yesterday unanimously approved by the Parliament.
The budget did not reflect any change on the overall total expenditure (more than Rwf984bn) mostly focused on accommodating additional grants of about Rwf22bn from various donors.
Presenting the proposal before the House, the Minister of Finance and Economic, Planning John Rwangombwa, explained that the review would allow for the reallocation of resources and incorporating grants.
Rwangombwa said that the additional funding came from donors, like the World Bank, who granted Rwanda Rwf14bn as a bonus for proper allocation of funds received from the institution.
Another donor is COMESA. Whose grant will cover for the losses incurred through reduction in taxes of about Rwf8.5bn in trade with her fellow EAC members.
The review saw some ministerial budgets cut and transferred to other areas without affecting the total annual budget.
“We are trying to control inflation by reducing money in circulation. There are some changes in various ministries that call for adjustments, in such cases, we transfer money basing on priorities” said Rwangombwa.
The reviews put into effect two bilateral deals between the government and the Saudi Arabia Development Fund for the Kitabi-Nile Congo basin road and Power projects for various areas in the country.
Both deals are worth $17 million and they were passed unanimously following the minister’s request with regard to the urgency of the funds to expedite the projects.
Rwangombwa told Parliament that the funds were needed to foster the government’s target of 16 percent power supply leading to 50 percent coverage in a seven year period.
He added that the Huye-Rusizi road through Nyungwe forest is in poor condition despite its economic advantages hence a need for a fast pace on the project already underway.