Addressing both chambers, Minister Ndagijimana pointed out that the fiscal policy of 2021/22 will prioritize spending to deliver on investments aimed at achieving National Strategy for Transformation (NST1) goals.
“Significant budget spending will focus on the needs under the Economic Recovery Plan and the National Strategy for Transformation with much attention to the key economic sectors, as well as the rollout of the Covid-19 vaccination program,” he said.
The total resources estimated for the fiscal year 2021/22 will amount to Rwf3,807 billion. This amount is made up of domestic revenues amounting to Rwf1,993.0 billion comprising of Rwf 1,717.2 billion from tax revenue and Rwf275.8 billion from other revenue collection. External grants are estimated at Rwf 612.2 billion whilst external loans of Rwf 651.5 billion is envisaged for accrual to the Treasury.
Equally to the projected resources, total expenditure in the fiscal year 2021/22 is projected at Rwf3,807 billion. This figure is made up of recurrent spending of Rwf 2,431.7 and capital spending worth Rwf1,393.3 billion. Furthermore, projected spending include an amount of Rwf 5.7 billion on inventory, Rwf 43.8 billion under various equity investment and fund shares for government and loans spending amount of Rwf 134.9 billion.
NST-1 and Resources Allocation
Government’s expenditure policies in fiscal year 2021/22 are guided by National Strategy for Transformation priorities and objectives. To this end, the Economic Transformation pillar takes the lion’s share of the resources at Rwf 2,234 billion amounting to 58.7 % of the total budget. Social transformation will take up Rwf 1,034 billion (27.2 %) while Transformational Governance is allocated Rwf538 billion representing 14.01% of the total budget.
In line with NST-1 strategic objectives, some of the priority areas agreed during planning and budgeting consultations formed the basis for resource allocation in 2021/22 fiscal year as shown below;
Agriculture productivity will be increased through scaling up use of inputs.
The budget will cater for increased access to electricity and clean water through construction of water supply systems.
Promoting urbanization will include execution of urban development project in secondary cities. Affordable housing projects will be supported with basic infrastructure.
Other areas of focus include; accelerating transport projects and construction of national roads, promoting innovation and increasing digital literacy, strengthening the health system by increasing access to quality health, improving the quality of education, strengthening social protection programs by Scaling up the coverage of Social Protection programs and support businesses affected by Covid-19 through Economic recovery fund.
The 2021/22 draft finance bill is in line with the 2021/22–2023/24 Budget Framework Paper presented to Parliament on May 5th 2021 and was amended to reflect the recommendations from the Parliament as submitted on June 3rd, 2021.