EDITORIAL: It's a development oriented Budget

The Rwf1.768 trillion Budget Estimates for 2015/16 that Finance minister Claver Gatete presented to Parliament, yesterday, is a growth oriented budget that will accelerate the country’s march toward self-reliance and middle income status. As expected, the budget’s priorities are in line with the second Economic Development and Poverty Reduction Strategy (EDPRS II) and Vision 2020. By focusing on infrastructure development, agriculture and export promotion, the budget addresses the most important aspects of achieving growth. Development-oriented sectors like agriculture, rural infrastructure development, industrial parks and energy projects, among others, have been allocated more resources to help achieve the desired growth objectives over the next financial year. Energy and other infrastructure facilities are essential for any country to attract investors and reduce the cost of doing business. It is also plausible that the government has put in place strategies to widen the tax base and support industrial production. This could also ease the country’s debt burden in the long-run. Such interventions will also safeguard the country against shocks in the global economic arena. Of the Rwf1.768 trillion Budget Estimates for the 2015/16 fiscal year, government will finance 66 per cent through domestic resources, while external funding has reduced to 34 per cent. The government’s move to scrap taxes on raw materials and manufacturing ingredients like wheat flour will also go a long way in supporting the country’s industrial sector. However, civil servants should implement the projects and activities planned in the next Fiscal Year without wasteful expenditure that seems to be stubbornly lingering, at least according to the annual reports by the Auditor General. That way, the country’s agenda to join the club of middle-income economies in the medium term will be realised.

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EDITORIAL: It's a development oriented Budget