Budget to hit Rwf1 trillion

Rwanda’s national budget will reach Rwf1.116 trillion in the financial year 2011/2012, up from Rwf984 billon in the financial year 2010/11, the Minister of Finance and Economic Planning, John Rwangombwa said yesterday. The Minister said that the increase is mainly driven by a boost from Global Fund support worthy Rwf74billion which was formally not captured as budget support. “The total increase is mainly due to domestic resources and is a nominal increase from…partner who has been always outside the budget,” Rwangombwa said. Rwanda chose the policy to channel aid through budget support, a move that is said to address national priorities. Rwangombwa added that domestic revenues are increasing by 0.2 of GDP to Rwf5.38 billion next fiscal year from Rwf4. 4.71 this year. While briefing the journalist about joint budget support review, Rwangombwa said that government reduced domestic financing from Rwf70b to 12 billion this year. “We are increasing resources to support our budget but also there is consistence in terms of support we get from our partners at 41 percent of the total budget,” he added.In terms of budget support, development partners are expected to contribute Rwf271.2 billion in 2011/2012. Achini Tillessen, Head of Economic and Governance Section in EU projected growth to be at seven percent taking into account the volatile global environment. A high level committee chaired by Prime Minister, Bernard Makuza, was established to monitor the risks originating from the volatile global environment that may affect the economy. “There of course risks, they could be mitigated especially in food prices if there is good harvest here,” Tillessen emphasized. He pledged support, adding that discussion will be ongoing between government and development partners on the changes and see what needs to be adjusted. The 13th Joint Budget Support Review was represented by seven development partners including, African Development Bank, Belgium, European Commission, Germany, the Netherlands, the United Kingdom and the World Bank and representatives from USAID and IMF. Ends

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Budget to hit Rwf1 trillion