In the 2021/2022 national budget presented by the Minister of Finance and Economic Planning Uzziel Ndagijimina before parliament, the government expects that Rwf2,413.7 billion representing 63.4 per cent will go into recurrent expenditure while Rwf1,393.3 billion will be spent on development-related initiatives.
The recurrent expenditure is significantly higher than the Rwf1,595.4 billion in the revised fiscal budget of the current financial year 2020/21.
The increase in recurrent expenditure is mainly driven by increased allocations for employees’ wages arising from ongoing restructuring exercises including the creation of new structures in the public sector.
Among the key sectors undergoing restructuring are education and health sectors which have new recruits.
Government will also spend up to Rwf256.6 billion for interest payments which will go into covering interest on external debt (Rwf94.4 billion) and domestic debt.
BRD
Over Rwf60 billion has been earmarked for equity and investment fund shares which will be spent on aspects such as ongoing recapitalization of Development Bank of Rwanda as well as the inclusion of some investment projects for export diversification as well as allocation such as Bugesera Airport Company.
The government has previously committed to recapitalize the financial institution to enable it to play an increased role in the expansion of the private sector to accelerate development.
Other winners in the 2021/2022 budget included infrastructure development especially around the road network, electricity rollout value addition in the agriculture sector among others.
Agriculture
In the agriculture sector among the projects set to have capital injections include maintenance of cereal storage Rwf2.2 billion), agriculture research and development Rwf3.2 billion, establishment of milk diaries Rwf8.6 billion. Preparatory works for Gabiro Agribusiness Hub was allocated Rwf25 billion.
Farmers are also set to benefit from feeder roads which have been allocated Rwf24.9 billion.
Road network
Expansion of the road network also featured prominently under infrastructure development with over Rwf60 billion allocated for the construction of roads such as Kibugabuga-Shinga-Gasoro, Nyagatare-Rukomo, Kagitumba-Gabiro, Sonatubes-Gahanga-Akagera and Ngoma-Ramiro among others.
Education
Within the education sector, about Rwf35.6 billion will go into building and maintenance of schools while Rwf25.1 billion will go into improving the quality of basic education including hiring of trained teachers.
University of Rwanda will see about Rwf3.9 billion go into facilities development.
The budget also made provisions for expansion and purchase of strategic fuel reserves which could serve to accommodate growing fuel consumption and fluctuations of prices on the international market.
IT
The coming budget also factors in expenditure in further installation of CCTV cameras in public places with expenditure to reach Rwf1.6 billion, cyber security projects Rwf2.7 billion and establishment of innovation hubs Rwf2 billion.