House set to approve draft Budget today

PARLIAMENT - Parliament is today set to discuss and pass the draft budget before its official reading. The budget whose framework outlining the nation’s spending plans for the fiscal year 2010/11 running from July 2010 to June 2011, was presented last week. The Parliamentary Director General for Information and Outreach, Augustine Habimana told The New Times yesterday that the current budget will be the second aligned with the East African Community (EAC) budget calendar. “The Lower Chamber will discuss the draft and thereafter hand over their observations and recommendations for Cabinet approval before the official budget reading on June 10,” he said The paper seeks to communicate the strategic policy choices behind resource allocation, including the costs, risks and opportunities which may impact the government’s ability to reach medium term targets. According to the Budget Framework Paper, the development expenditure is projected to rise from Rwf 331.9billion to about 397.7billion. The overall fiscal and financing is expected to rise sharply from Rwf77.8billion to Rwf 140.3billion, though the budget deficit is projected to decline thereafter. “The widening budget deficit in 2010/2011 implies a drawdown of government deposits in the National Bank of up to 1.1percent of the GDP. This would be covered by the disbursement of World Bank and IDA grant scheduled for expenditure in the last quarter of 2010,” reads the concept note. Ends