The Government handed down the budget for the fiscal year 2019-2020 on Thursday worth Rwf2.8 trillion. As it is in most public spending decisions, the government makes priorities with some sectors taking more money than others.
Winners
BRD, RwandAir
The Development Bank of Rwanda (BRD) and RwandAir are one of the big winners in this year’s budget.
The Government set out a package of Rwf244.1 billion for the next three years to recapitalise BRD and increase the capacity of the national airline.
This ostensibly means the bank will have more capacity to carry out development activities which businesses, start-ups, and many Rwandans will benefit from.
This includes building hundreds of units of low cost houses, extending more capital to private businesses, and facilitating both big and small businesses to access international markets and export their products.
The big share to the national carrier will allow it to acquire more planes and expand its operations.
Infrastructure
City dwellers are expected to benefit from massive infrastructure outlays.
The Government has dedicated a big share (Rwf122.1 billion) of its budget to promoting urbanisation. This includes facilitating investors to build affordable homes and entertainment facilities, among others.
Stadiums will be built in Bugesera, Ngoma and Nyagatare, as well as the Kigali Arena which will host indoor sports.
City dwellers will also get improved access to clean water as the Government has set aside Rwf11.2 billion for that purpose.
Police
Government says it will enhance capabilities and operations of Police. It has dedicated at least Rwf5 billion to allow the National Police of Rwanda to rollout public CCTV.
Rwf1.5 billion was also set aside for building a digital centre for driving tests, Rwf1.6 billion for fire brigades, and Rwf1.9 for cyber security.
Fight against cancer
There are big plans by the Government to fight against cancer.
The budget will significantly support Kanombe Military Hospital’s Cancer Centre and the establishment of the Research Institute against Digestive Cancer (IRCAD).
This could mean that more people will no longer have to seek these services abroad.
It has generally dedicated a fair portion of Rwf230.9 billion to the healthcare.
Transport, textile, communication
As it was the case last year, transporters, those in textile business and communication are yet again winning big in this year’s budget from reduced taxes and exemptions. Particularly,
Trailer trucks will not be taxed compared to the previous 10 per cent of the value of the truck.
Trucks with a capacity of between 5 to 20 tonnes will pay 10 per cent tax compared to the previous 25 per cent.
Commercial trucks with a capacity of over 20 tonnes will not pay any tax a huge relief from the previous 25 per cent levy.
Public transport vehicles with a capacity of between 25 to 50 passengers have their tax brought down to 10 per cent as opposed 25 per cent previously.
Vehicles with a capacity of over 50 passengers will pay 0 taxes down from the previous 25 per cent.
The Made-in-Rwanda clothes brand will also have raw materials zero rated compared to the previous 10 per cent levy and at the same time communication equipment will be tax exempted down from 25 per cent.
Losers
Education
The education is not yet the big beneficiary. The sector has received less than 11 per cent of the total budget and members of the parliament pointed out pre-primary education as the biggest loser.
Agriculture
Agriculture is also still getting a limited share of the portion with a little over 5 per cent.
editor@newtimesrwanda.com