•First budget under EAC budget harmonisation

The Minister of Finance and Economic Planning James Musoni will today present the 2009-2010 Draft Budget before both Chambers of Parliament.

If passed by the legislators, the budget to be read in June will become the country’s first budget       under the new East African Community budget harmonisation.

The budgets in all the five member states are supposed to be read on the same day at the same time.

"At this moment I cannot reveal the figures or anything within the budget because it has not been officially presented, all I know a few changes were made but all in all, this is going to be a very good experience for Rwanda because this is going to be our first budget under the EAC arrangement,” said Constance Mukayuhi Rwaka, the Chairperson of the Parliamentary budget Committee.

The draft estimates what the Government intends to spend on in the next financial year, revenues and other sources of income as well as deficits and surpluses.

The presentation to both the Lower Chamber and the Senate will allow legislators to debate and give their views on the draft before it is approved for passing next month.

The parliamentarians are also expected to debate on the national budget law to pave way for a financial year beginning every July to June the following year.

Finance and Planning Ministers of EAC member states are expected to present their countries’ respective budgets on June 11.

Initially before harmonisation with EAC member states, Rwanda’s financial year used to span from January to December.

Rwanda’s budget is partly financed by domestic revenue collections, donations and grants from the World Bank, International Monetary Fund (IMF) and others.

Most development partners including the British Government through the Department for International Development (DfID) and the European Commission have embarked on channelling most of their aid directly through the national budget.

Meanwhile the World Bank has already made a grant donation of $80 million (approx. Rwf45.4bn) towards the 2009-2010 National Budget.

The grant is expected to enhance the development agenda in support of the implementation of the Economic Development and Poverty Reduction Strategy (EDPRS).

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