The Government of Rwanda has decided to increase spending by Frw 140.7 billion from Frw 1,954.2 billion indicated in the 2016/17 revised budget to Frw 2,094.9 billion in the 2017/18 fiscal year, the Finance and Economic Planning Minister has said.
Presenting the 2017/18 National Budget to a joint parliamentary session yesterday, Minister Claver Gatete pointed out that generally economic plans enshrined in the 2017/18 budget as well as medium term will focus on promoting investments and locally made products hence the theme: “Sustainable growth through infrastructure development and promotion of Made in Rwanda”. In this regard, Minister Gatete noted that Rwanda’s economy is expected to grow by 6.2% in 2017 and 6.8% in 2018.
Government expects to finance 66% of the 2017/18 budget through resources, 17% through loans and expects 17% to come from grants through budget and project support.
“Government’s objective is to reduce the reliance on external donor support especially where grants are concerned. However, this support remains vital for our development,” Minister Gatete told lawmakers.
The 2017/18 domestic revenue is projected at Frw 1,375.4 billion (66% of total budget) and rises to Frw 1,738.2 Billion representing 83% of the total budget when combined with loans.
The increase in domestic revenues is attributed to Frw 118.9 billion increase in tax revenue collection from projected Frw 1,081.4 billion to Frw 1,200.3 billion.
Total grants are estimated at Frw 356.7 billion compared to Frw 326.6 billion in 2016/17 revised budget. Total external loans are estimated at Frw 362.8 billion in 2017/18 and Frw compared to Frw 375.1 billion in the 2016/17 revised budget on account of revised projections based on the status of the execution of projects.