2012-13 Budget a reflection of sustained growth

The Minister of Finance, John Rwangombwa, Thursday presented the 2012-13 national budget, reflecting a 16 per cent increase in public spending – to Rwf1.38 trillion up from Rwf1.19 trillion in the current budget. It was projected that domestically, mobilised resources will amount to Rwf724.4 billion (more than half the total budget), as the country increasingly moves towards self-reliance.Notably, a substantial chunk of the budget, Rwf451.1 billion, will go to human development cluster, which includes education and health, two of the most important sectors for Rwanda’s development agenda. With the country seeking to become a knowledge-based economy and services hub, there is no better investment than in the skills and competitiveness of the citizenry as well as ensuring their health.The increased resources in this sector should, however, help address the issue of quality, especially in education which should directly respond to the ever-changing dynamics in the world of work and entrepreneurship.Considerable resources will also go to energy, transport and agriculture – all of which are critical areas.The minister announced several measures, including reduction in taxes for Small and Medium Enterprises (SMEs), with a view of boosting compliance and cutting administrative costs. Equally significant, the government will inject more cash in the Savings and Credit Cooperatives (Saccos) as well as the Umwalimu Sacco (for teachers), which should go a long way in improving the welfare of the ordinary people at the grassroots.The investment code will also be reviewed, with at least Rwf5 billion expected to be generated from scrapped incentives. Trade deficit is likely to increase, owing to uncertain external pressures. That will remain a challenge, at least in the short term.Nonetheless, the government and other actors should continuously exploit every opportunity to increase off-farm jobs and to process local commodities to ensure a better return on our exports. That, coupled with other initiatives particularly targeting the youth and women, will ensure the growth trend is sustained.

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2012-13 Budget a reflection of sustained growth