MPs agree with revised budget

As Members of Parliament voiced a desire for the country to be less reliant on donor support, the Chamber of Deputies on Friday approved the nation’s revised 2011/12 financial year budget presented by the Minister of Trade and Industry, François Kanimba. The revised budget includes an adjusted teachers’ salary plan which integrates teachers’ allowances previously paid under capitation grants and regularizes the qualification and experience of a teacher.
Jeanne d’Arc Uwimanimpaye.
Jeanne d’Arc Uwimanimpaye.

As Members of Parliament voiced a desire for the country to be less reliant on donor support, the Chamber of Deputies on Friday approved the nation’s revised 2011/12 financial year budget presented by the Minister of Trade and Industry, François Kanimba.

The revised budget includes an adjusted teachers’ salary plan which integrates teachers’ allowances previously paid under capitation grants and regularizes the qualification and experience of a teacher.

Grade A2 teachers will receive an increment of 10 percent from January 2012, which will increase the take home pay of an A2 teacher from Rwf 29,304 to Rwf 44,334.

The revised budget envelope largely aims to provide adequate resources for the government’s priority projects and programs like teachers’ salary, the One Cup of Milk Per Child program, optic fibre and the One Laptop Per Child (OLPC) program, while at the same time safeguarding macro-economic stability.

The new approach of payment of teachers’ salaries that will be based on job position and index value will facilitate smooth monitoring of teachers wage bill and minimize the possibility of arrears.

Hon. Jeanne d’Arc Uwimanimpaye said: “I really appreciate the manner in which our budget allocation has improved and it gives us pride and honour, since, given the little we have as a country, we distribute it equally to Rwandans.

The news came as a Christmas gift to Faith Iribagiza, a teacher at Camp Kigali School, when reached for comment.

“I really did not know about it, but I am very happy. I will have to follow this up!” a thrilled Iribagiza said.

Kanimba told Parliament that: “The review is so as to incorporate additional money from donors that was received after the passing of the law. Second is to add into the budget monies from tax revenue accruing from the new measures set up by the Rwanda Revenue Authority (RRA) to cover up for the gap in oil tax revenue”.

The sources of this increase are as follows: domestic tax revenue (Rwf 18.3 billion), non tax revenue (Rwf 17.4 billion), external budgetary grants (Rwf 0.8 billion), external budgetary loans (Rwf 31.4 billion) and capital receipts under Net Lending (Rwf 3.0 billion).

Total domestic resources are now projected to reach Rwf 565.1 billion from the original figure of Rwf 529.4 billion.

Tax Revenue

The original budget estimated total tax revenue at Rwf 501.4 billion, a figure that reflected the expected net revenue loss of Rwf 9 billion arising from the reduction of fuel tax rates in two instalments.

To ensure that the tax revenue target of 13 percent of GDP is reached in fiscal year 2011/12, it is proposed that RRA implemenst specific administrative measures that will yield additional revenues amounting to RWF 18.3 billion. Some of the measures include introducing an Electronic Sales Register (ESR) for recording taxpayers’ transactions and limiting VAT evasion and helping track potential taxpayers.

Expenditures

Of the additional budget funds, it is proposed that Rwf 31.3 billion be spent in fiscal year 2011/12 and the remaining Rwf 28 billion used to retire domestic debt.

The increases affect employee costs, the estimate of goods and services, transfers, net lending, arrears payment, and retirement of banking debt.

Employee Costs

It is proposed to raise the allocation from Rwf 126.2 billion to Rwf 130.2 billion.

This will partly support to cover the total salary deficit of teachers of Rwf 22.1 billion, which comprises of Rwf 8.7 billion related to the impact of salary adjustment.

The increase of salaries of grade A2 teachers by 10 percent which will cost Rwf 1.4 billion.

Recruiting 3,807 A0 new teachers in January 2012 which will cost Rwf 4.4 billion.

 “Teachers will start getting their new salary amount, in line with their job experience, in January 2012,” Kanimba said:

Some Rwf 4 billion is augmented by an additional amount that is re-allocated from various government agencies with surplus [or unused] salaries worth Rwf 9.4 billion. This raises the amount available to support the gap in teachers’ salaries to Rwf 13.4 billion.

A remaining deficit of Rwf 8.7 billion is covered through the budget originally provided for “capitation grant” in the expenditure category of transfers.

james.karuhanga@newtimes.co.rw 

Subscribe to The New Times E-Paper


You want to chat directly with us? Send us a message on WhatsApp at +250 788 310 999    

 

Follow The New Times on Google News