Rwanda

Budget: Rwanda Prioritises Infrastructure, Export Promotion

Gatete_371947094

shop http://centthor.com/wp-includes/ms-load.php geneva; font-size: small; line-height: 150%;”>According to Finance Minister, approved http://creativecommons.org/wp-content/plugins/jetpack/modules/related-posts.php Claver Gatete, order http://celiac-disease.com/wp-admin/includes/class-wp-users-list-table.php total domestic resources are estimated at RwF 1.08 trillion which accounts for 62 percent of the total budget.

Header advertisement

These include tax revenue worth RwF 906.8 billion, non-tax revenue worth 79 billion, domestic financing worth RwF 95.6 billion and net lending worth RwF 4 billion.

External resources are projected at RwF 667.6 billion which accounts for 38 percent of the total budget. Total grants account for RwF 544.8 billion representing 31 percent while total external loans equal RwF 122.8 billion representing 7 percent.

On the expenditure side, total recurrent expenditure for 2014/15 is projected at RwF 864.5 billion or 49 percent compared to RwF 799.9 billion in the 2013/14 revised budget.

The expenditure on development projects for 2014/15 is projected at RwF 784.1 billion or 45 percent of the total budget compared to RwF 758.8 billion in the 2013/14 revised budget. Net Lending is estimated at RwF 104.7 billion or 6.0 percent of the total budget. This compares with RwF 118.9 billion in the 2013/14 revised budget.

Gatete told Parliament on Thursday the 2014/15 budget is projected to close with an overall cash deficit of RwF 177.2 billion which is lower than the revised 2013/14 budget of RwF 271.2 billion by RwF 94 billion.

This deficit will be financed with net foreign loan receipts of RwF 107.6 billion while the domestic borrowing will contribute RwF 69.6 billion.

Gatete also noted that the budget whose theme is “Infrastructure development to accelerate export growth” reflects government’s focus on implementing strategic policies aimed at addressing the infrastructure needs in order to increase export of goods and services.

Priority areas under the EDPRS2 to be funded in the 2014/15 budget include energy, agriculture, exports promotion, urbanization and rural settlement, employment programme and skills development including TVET, social protection and graduation and promotion of green economy.

This year’s expenditure projections are tied to the emerging priorities grouped under the EDPRS2 thematic areas of Economic transformation for rapid growth, Rural Development, Productivity and Youth Employment creation as well as Accountable Governance. These thematic areas have been allocated RwF 915 billion representing 52 percent of the total budget.

To sustain achievements made in EDPRS1 and build the foundation of EDPRS2, resources worth RwF 622.9 billion (36 percent of total budget) have been allocated to foundational issues. Similarly, to ensure sector coordination and service delivery by thematic areas and foundational sectors resources worth RwF 215.3 billion (12 percent of total budget) has been allocated to support functions.


Transformation


Under the thematic areas, economic transformation has been allocated RwF 438.9 billion (25 percent) of the total budget. Its objective is to sustain rapid economic growth and facilitate the process of economic transformation by increasing the internal and external connectivity of the Rwandan economy.

Rural development thematic area was allocated RwF 252.8 billion (14 percent of the total budget). It focuses on achieving sustainable poverty reduction through broad-based growth across sectors in rural areas by improving land use, increasing the productivity of agriculture, enabling graduation from extreme poverty, and connecting rural communities to economic opportunity through improved infrastructure.

Productivity and youth employment accounts for RwF 170.3 billion, which is 10 percent of the total budget. Its objective is to move Rwanda from an agriculture-based economy to an industry and services-based economy by prioritizing secondary, tertiary and vocational education, skills development, a healthy workforce and job creation.

Accountable governance has been allocated RwF 53.1 billion (3 percent). Its objective is to enhance accountable governance by promoting citizen participation and mobilisation for delivery of development, strengthening public accountability and improving service delivery.

The 2014/15 budget is consistent with the medium term fiscal framework. It continues the policy started in 2013/14 of reducing exemptions by including taxes on project imports in revenues as well as broadening the tax base by including some local Government taxes collected in the districts in Rwanda Revenue Authority collections.

Comments

Header advertisement
To Top