By Jejje Muhinde;
The Minister for Finance and Economic Planning Uzziel Ndagijimana has presented the national budget draft bill for the 2022/2023 financial year totaling Rwf4, 658.4 billion.
The budget proposal presented to both Chambers of Parliament on Thursday, June 23, 2022, indicates an increase of Rwf217.8 billion equivalent to 5% compared to the previous Rwf4.4 trillion approved in the 2021-22 revised budget line.
The Minister told Parliament that this budget reflects successes made in confronting the COVID-19 pandemic through vaccination rollout and other measures as well as the economic recovery that started in 2021.
“It has also considered the crisis brought by the Russia-Ukraine war, which is affecting the recovery efforts by rising oil and food prices,” Minister Ndagijimana told Parliamentarians.
The government hopes to finance the budget to a tune of 80.5%, largely borrowing Rwf 1,096.7 billion, while Rwf2,372.4 billion will be financed through domestic revenues and Rwf282.6 billion in domestic financing.
The estimated total resources for the fiscal year 2022/23 will amount to Rwf4,658.4 billion.
Government will fund the budget to a tune of 80.5%, this includes Rwf2,372.4 billion in domestic revenues, Rwf282.6 billion in domestic financing, and Rwf1096.7 billion in external loans.
External grants will account for Rwf906.9 billion which is 19.5% of the total budget
Corresponding to revenues, Government is expected to spend Rwf4,658.4 billion in the next fiscal year, which is FRwf217.8 billion higher than the revised FY 2021/22 budget.
Recurrent spending is estimated at Rwf2,654,9 billion representing 57% whereas capital expenditure is made up of Rwf2,073.3 billion representing 44.6% of the total budget.
The government will allocate Rwf2.7 trillion (about 58.5% of the entire budget) to the Economic Transformation Pillar.
These resources will scale up agriculture productivity, create jobs, support private sector development and strengthen climate change mitigation measures.
In addition, it will also scale to please access to electricity and clean water, support urbanization, and settlement, improve the national road network, scale up the adoption of ICT, automate Umurenge Sacco’s and implement agriculture de-risking and financing facilities.
Under the Social Transformation, the Government will allocate Frw About Rwf1.2 trillion (approximately 26.4% of the entire budget.
The budget share will be spent on improving quality and access to health and education, eradicating extreme poverty through scaling up social protection programs, improving nutrition through early detection, provision of fortified foods, and scaling early childhood development facilities.
The funds will also promote family and gender, sports and culture as well as disaster management through enhancing disaster preparedness, response, and recovery.
Under the Transformational Governance Pillar, the Government will spend Frw 707.1 billion (about 15.2%of the total budget).
Ndagijimana assured Parliamentarians that the Government will closely monitor developments such as drought or decrease in global commodity prices that affect the export prices in order to take necessary measures.