A plenary sitting of the Chamber of Deputies on Monday, June 28, 2021, voted the Law determining State Finances for the 2021/2022 fiscal year.

The budget law was voted by 57 MPs of 62 MPs who had convened for the session.

Government plans to spend Rwf3, 807 billion, up from Rwf3,464.8 billion in the current fiscal year.

Domestic financing is expected to raise 67 per cent of the national budget, an equivalent of Rwf2.5 trillion.

About Rwf1.26 trillion will come from external sources of which Rwf612.2 billion are grants and Rwf651.5 billion are external loans.

The government expects that Rwf2, 413.7 billion representing 63.4 per cent to go into recurrent expenditure while Rwf1, 393.3 billion will be spent on development-related initiatives.

While presenting the revised budget to the Chamber of Deputies, Omar Munyaneza, and the Chairperson of the Committee on National Budget and Patrimony, said that the recurrent budget has increased to allocate funding for interventions to cope with Covid-19 effects and salaries for newly recruited teachers.

The increase, he said, also aims at boosting school feeding programme, water supply, increasing agro-inputs, increasing medical staff in the health sector, among other allocations.

How gaps were covered

Munyaneza said most of the 173 gaps and priorities areas that were identified by legislators during their assessment of the draft budget as needing funding to a tune of Rwf311.2 billion, have been plugged.

Of these he said, the ministry considered to cover 152 gaps this fiscal year while the others will be catered for in the revised budget early next year.

In general, Rwf41.5 billion has been allocated to cover 56 gaps in the beginning of the fiscal year while the rest will be covered in the revised budget early next year.

Only 21 gaps that require Rwf35.1 billion were not covered, meaning that they will be catered for in the last two years of mid-term budget framework, which spans from 2022 to 2024.

"The gaps that MPs had identified were considered at 88.7 percent in the approved budget,” he said.

Some of the gaps that were covered include Rwf15.8 billion funding allocated to defence ministry pay for daily operations that include water, electricity, internet and others.

The re-allocation will also see the ministry get Rwf11 billion needed for the construction of a building at Gako Military Academy in Bugesera District.

Rwf1.3 billion was allocated to Rwanda Mines, Petroleum & Gas Board – RMB to support its exploration activities of gas petroleum while Rwf480 million was allocated to clear salary arrears owed to staff in Gicumbi district as Rwf239 million was earmarked to pay contractor who built Bishenyi road in Kamonyi District.

Munyaneza said Rwf361 million was allocated to CHUK to buy modern equipment needed in treating children born with health problems.

Over Rwf942 million has been allocated to National Agricultural and Export Board (NAEB) to support a flower project that could generate $1.2 million every two months.

The Rwf1.39 billion needed by the sports ministry to host and participate in international sports competition is only facing a Rwf200 million funding gap that will be considered in the revised budget, he said.

Munyaneza said some gaps will be covered in some institutions using grants and own generated revenues.

For instance, to get Rwf589 million for salary arrears owed to CHUK workers, the hospital is expected to use allocated budget and its own generated revenues.

MPs reactions

MP Emmanuel Bugingo asked if a disaster response intervention project to relocate people from high risk zones in Rugerero Sector, Rubavu District, has been allocated money.

"The first phase is at 50 percent with 120 houses and if it stalls, people in high risk zones will be affected. This should be considered in budget revision to avoid idle assets,” he said.

Munyaneza, the Chairperson of the Committee on National Budget and Patrimony responded that the project had been allocated Rwf900 million in the concluded fiscal year and that the cost drastically increased as Rwf1.7 billion has been spent so far before it is even completed.

He said that the government has pledged to ensure the project doesn’t stall but added there is need for monitoring by MPs to ensure it is considered in the revised budget.