The Government is expected to spend Frw3,245.7 billion in 2020-2021 fiscal year, which is Rwf228.7 billion higher than the revised budget estimates of Rwf3,017.1 billion.

This was revealed on Thursday by the Minister for Finance and Economic Planning, Uzziel Ndagijimana as he tabled the Budget Framework Paper for the 2020/2021 financial year that starts in July.

Ndagijimana told parliament that amount is made up of Rwf1,605.7 billion from domestic tax and non-tax revenue, external grants of Rwf492.5 billion and external loans of  Rwf783.4 billion.  

Total tax revenue is projected to reduce to Rwf1,421.4 billion in 2020-21, which is Rwf147.6 billion short of Rwf1,569 billion projected in the 2019-20 revised budget. 

The decline is a result of the economic effects of COVID-19 pandemic which has caused an economic downturn worldwide. 

The pandemic will generally have far reaching impact in terms of expenditure, and the Minister said the budget was designed to respond to economic recovery in the immediate and medium term.

The expenditure is made up of recurrent expenditure of Rwf1,582.8 billion, capital spending of Rwf1,298.5 billion and net lending outlays of Rwf 306.5 billion. 

Budget for the fiscal year 2020/21 will reflect medium term fiscal path which allows for an increased spending to reach National Strategy for Transformation goals while maintaining public debt at sustainable levels.

"We shall prioritise enhancing our health system, increase agriculture and livestock productivity, and scale social protection," Ndagijimana told lawmakers.

The Government has prioritised job creation, as well as support towards small and medium sized enterprises (SMEs), and large enterprises affected by COVID-19.

The budget will support Made in Rwanda, promote digital technologies to improve service delivery, and improve access to quality education.

Resources have also been planned to eradicate malnutrition and stunting, and strengthen disaster preparedness and management.