Increase budget by Rwf 14 Billion - MPs

PARLIAMENT – Members of the lower chamber of parliament on Wednesday recommended that the proposed budget for the year 2009-2010 be increased by more than Rwf 14 billion.

Thursday, June 04, 2009

PARLIAMENT – Members of the lower chamber of parliament on Wednesday recommended that the proposed budget for the year 2009-2010 be increased by more than Rwf 14 billion.

The recommendation was a result of a budget analysis that was carried out by the parliament’s economic commission in collaboration with the Ministry of Finance in May.

While presenting the first proposal of the budget on May 4, Finance minister James Musoni said the total amount of the budget was estimated at Rwf 812, 391, 029, 993.

Members of the commission also expressed concern over budget allocation to the different sectors saying it was disproportional.

"We clearly noticed that this budget is not enough,” MP Constance Rwaka Mukayuhi, who heads the commission said.

She explained to members of the House that production sectors like agriculture and infrastructure development received 9 per cent of the budget, while about 36 per cent was allocated to good governance.

It was also noted that many districts still face the problem of dependency on the central government instead of developing income generating projects to sustain their operations.

The commission however appreciated the consideration accorded to the pillars of the country’s Economic Development and Poverty Reduction Strategy (EDPRS), though it was noted that the latter is short by an estimated Rwf 153 billion, which may hinder its success as prescribed in the broader budget framework paper 2009-2012.

The budget proposal has to be finalised before the end of June, as Rwanda will follow the East African Community format of reading the annual budget in July.

Ends