• 2011/2 budget to hit trillion Francs
Increasing resources in productive sectors of the economy will be the major focus of the 2011/12 financial budget, which is expected to hit, for the very first time, the One Trillion Franc mark.
Finance Minister, John Rwangombwa said, yesterday, that the priority areas include agriculture, trade and financial services.
He was presenting the Rwf 1.116 trillion budget framework before parliament. This is an increase Rwf139 billion from the previous budget.
“We have resources, we increased domestic revenues and this budget reflects the collective determination of the government to mobilise resources,” Rwangombwa said in an interview after the presentation.
“It’s good we achieved one trillion but it’s nothing, it’s like the revenue of one company in the USA, we need more resources compared to what we want to achieve.”
Revenues invested in productive capacities will increase from Rwf137.4bn to Rwf 199.7 billion in the upcoming budget, representing a 17.9 percent of the total budget.
The implementation of the new budget starts in July of every year, a norm Rwanda adopted following the country’s entry into the East African Community.
Rwangombwa assured that the increase in spending will not negatively impact on the economy saying there was room to accommodate spending.
said he added that government has sources of finance and would not let the country fall into debt. He emphasised that the increased budgetary spending is to facilitate rapid development.
“We are increasing resources to support our budget but there has also been consistency in terms of the support we get from our partners at 41 percent of the total budget,” he added.
The Minister attributed this to the country’s accountability on the funds donated by development partners.
Development projects account for Rwf503 billion representing 40.9 percent of the budget compared to Rwf394b in the last financial year.
Other areas that recorded an increase in budget allocation include the human development and social sectors.
“This cluster is important to national growth because once citizens are healthy and educated, they will be able to contribute to the productive sector,” Rwangombwa explained.
Members of the Parliament welcomed the budget framework.
Constance Rwaka Mukayuhi, the chairperson of budget and state patrimony, said the figure defines tremendous efforts in resource mobilisation.
“It is impressive that we moved from Rwf35 billion in 1998 to a trillion, it reflects the confidence Rwandans have in their government and development partners in our governance,” Mukayuhi said.