The Ministry of Finance and Economic Planning will increase spending on productive sectors of the economy, particularly agriculture, financial services and trade in the fiscal year 2011/12, to facilitate rapid development.
The decision, which is contained in the budget framework that was presented to parliament early this week, means that more value is expected to be added to local goods and services which will in turn boost revenues.
The national budget is also projected to hit the Rwf1.116 trillion mark, up from Rwf35 billion in 1998.
This is an impressive record that reflects hard work on the part of the government, towards poverty reduction. It is also a confirmation of the confidence the development partners have in the economy.
With revenues and grants expected to rise to Rwf993.9 billion from Rwf844.2, government will have resources to invest in more developmental projects for economic growth.
The government is determined to mobilise resources locally with domestic revenues projected to reach 538.4 billion, where tax revenues are expected to contribute Rwf510.4 billion and non tax revenues, Rwf28 billion.
Government’s strategy to curtail excessive borrowing is, without doubt, commendable.
Spending on productive sectors should, however, help improve the competitiveness and the much needed innovation within Small and Medium Enterprises, especially in agriculture to allow them grow much faster with improved talent and human resources.