Money allocated to districts for development projects is expected to be cut by half from about Rwf143 billion in the current revised budget to about Rwf73 billion in the next fiscal year (2021/2022) budget, which implies a huge funding gap.

The issue was exposed on Friday, May 14, 2021, as the Chamber of Deputies’ Committee on National Budget and Patrimony started the budget hearing for the next fiscal year.

This follows the presentation of the Budget Framework Paper and medium-term budget estimates for fiscal years 2021/22-2023/24 to both chambers of parliament, by the Minister of State in charge of National Treasury, Richard Tusabe.

In 2021/2022, the Government plans to spend an estimated Rwf3,807 billion, which represents an increase of 9.8 per cent from the Rwf3,464.8 billion revised budget for the current financial year.

On the first day of the budget hearing, the Western Province, City of Kigali, and the Southern Province and their districts, as well as the Ministry of Local Government, are the public entities that presented their allocations for 2021/2022, planned activities, and challenges that could impede them.

Saidi Sibomana, Deputy Director General at Local Administrative Entities Development Agency (LODA) said that the budget cut has an impact on the new projects that districts wanted to invest in in 2021/2022.

He indicated that after observing the budget issue and consultations with different entities, an agreement was reached on activities that should be given focus.

They include the already started projects, which imply that the undertaking of new projects will be much discouraged in the next fiscal year, he said.

Also, he said, the focus will be put on investing in projects that are profitable and generate money.

Also, he said, the Government will ensure that it makes its contribution needed for enabling more investments in the development of districts and for the development partners to execute projects that are primed to improve the welfare of the citizens.

For instance, he said that World Vision has about $30 million that it would use in two years to support water access to residents in 11 districts including Karongi, but needs contribution from the Government for the implementation of such initiative.

Putting aside funds meant for paying compensations for expropriated residents to pave the way for public interest projects will also be indicated, he indicated, pointing out that many development partners do not allocate money for expropriation.

However, he said that social protection in order to support residents who were affected by the Covid-19 pandemic, among other issues, will be given attention.

Huye District Mayor, Ange Sebutege, said that the district lacks Rwf1.5 billion for Huye Industrial Park development, especially for infrastructures such as the road [that leads to the industrial park].

Talking about funding gaps, Janvier Gashema, Nyaruguru District’s acting mayor said that the district had a project to construct Kibeho-Kivu cheap seal road which would connect the two sectors at a cost of over Rwf4.7 billion, but the budget was not available.

Also, the district has a funding deficit of more than 870 million for 45 drying facilities to improve post-harvest handling for agricultural produce.

Nyamasheke District Mayor, Appolonie Mukamasabo expressed concern that the district lacks funding to provide small livestock to needy residents to help them improve livelihoods, indicating that it has not received money for such an activity since 2019.

Reacting to the concern, Rehema Namutebi, Director-General of National Budget at the Ministry of Finance and Economic Planning said that the budget cut was caused by availability of limited resources.

"I think next year, we should look for another approach of work such that we focus on mandatory projects,” she said, citing ongoing projects among those that should be given priority.

"We should look for efficient ways by which we can achieve the results we have to,” she said.

Omar Munyaneza, Chairperson of the Committee on National Budget and Patrimony said that during budget analysis, MPs will take into consideration the projects that matter a lot to the welfare of the people so that they are prioritised.

The national budget bill for 2021/2022 is expected to be submitted to Parliament in June for consideration.