The Chamber of Deputies, on Tuesday, passed the draft state budget bill that outlines state finances for the 2012/13 fiscal year.The ever-changing national budget policies and programmes – in every fiscal year – cannot be implemented without a guiding legal framework. MPs told The New Times on Wednesday that the bill sets clear and crucial guidelines on budget implementation as government continues to insist on getting value for money. It will quickly be promulgated to permit the implementation of government policies and programmes as highlighted in the 2012/13 national budget, which will be effective July 1, noted MP Abbas Mukama, the vice chairperson of the Chamber of Deputies’ standing committee on budget and national patrimony. Apart from enabling the legal implementation of the national budget, Mukama agreed that the bill is in line with the House’s increased momentum to stem the embezzlement of public funds.Expected total revenues, grants and loans for the total state budget for the fiscal year 2012/2013 are valued at Rwf1.38 trillion. Article 17 notes that payments of funds provided in the 2012/2013 budget shall be allowed until June 30, 2013, but expenditures commitment shall end on May 15 of the same year unless authorised by the Minister of Finance.Meanwhile, MP Connie Bwiza, a member of the committee on budget, told The New Times, that in her view, the public needs to know the budget policy strategy of how energy is the core focus of the budget, “in relation to electricity, as the basis of sustainable development either in industry development where we are still weak.”Bwiza noted that she understands that it is only through wide distribution of electricity that trading centres all over the country can develop hence more job creation. “On this point, electricity price is increased and may sound controversial but it is not because the unit price has to increase for a short while so that the subsidies government has been injecting through EWASA go into energy investment so that more opportunities that will reduce the prices in a sustainable way are put in place, thus government stops paying a lot of money for fuel and electricity used in generators,” she noted.“The government has to stop the contribution it makes to generators gradually as the energy plants, permanent ones are in place and affordable by ordinary citizens and investors,” Bwiza added, appreciating that the new budget is more developmental, than the last budget. “Capital investments are highly targeted, Hangumurimo programme will bring more entrepreneurial skills and reduce unemployment in the youth who are the majority of the work force, SMEs will be promoted so that processing and transformation that brings value addition in the citizens production increases productivity for a wide range of market opportunities and industries to stand competition.”According to the bill, after the adoption of the budget, the Minister of Finance or the Chairperson of the Executive Committee of a local administrative entity shall inform the Chief Budget Manager of each budget agency of its approved budget, and shall request from them detailed expenditure plans of the budget. Part of article 7 states that: “The Minister in charge of finance shall issue each Chief Budget Manager, authorization for execution of the budget basing on the amount the entity received and after examining the annual expenditure plan of the budget. The authorization shall be issued on a quarterly basis. However, depending on the State budget revenues, he or she may issue it on a monthly basis.”Article 11 states that: “No payment shall be made without prior commitment to pay having been established, except for international debt service payments if it is decided that such a commitment shall be regularized after the payment.”The bill states that the chief budget managers are required to ensure timely acknowledgement of invoices by the entity and their recording in the appropriate registers in a specific period and the submission of payment requests to the Ministry ofFfinance, before the due payment date. The bill also sheds light on matters to do with the authorisation of reallocation of funds from one budgetary line to another in administrative entities.The Minister of Finance, after approval by Cabinet, authorises chief budget managers to transfer funds from some items to others of the same category in the current Budget of the budget agency appropriations, subject to a 20 per cent limit of the allocations of such an item. The Minister shall issue authorisation in case of excess upon approval by Cabinet and reallocations shall be notified to the Minister in writing. However, the Minister may withdraw such authorization if necessary. “Reallocations beyond approved limit and between broad categories of such a budget shall first be approved by Cabinet and Parliament.”The bill stresses that “it is prohibited to transfer funds from salary and allowances line to other ordinary budget lines or from one institutional budget to another except if approved by the Chamber of Deputies.”The bill says that all raised or received Government funds shall be credited into a single Treasury Account in the National Bank of Rwanda. It stresses that “any public officer who receives public money shall promptly deposit it in a designated bank.”
