This saw an increase of Rwf 291.7 billion (11%) compared to the previous year.
The minister presented the draft yesterday to both chambers of Parliament as he presented the Budget Framework Paper (BFP) and the midterm budget estimated for 2019/20-2021/22.
Minister Ndagijimana noted that the budget for the fiscal year 2019/20 will reflect the medium-term fiscal path which allows for increased spending to reach the NST1 goals while maintaining public debt at sustainable levels.
In this regard, the budget envelope is projected to increase from Rwf 2,585.2 billion in the revised budget for Financial Year 2018/19 to FRW 2,876.9 billion, in Financial Year 2019/2020 an increase of FRW 291.7 billion and to reach to more than 3,560.5 billion in FY 2021/22.
The proposed total resources estimated for fiscal year 2019/20 is made up of Rwf 1,726.2 billion of domestic tax and non-tax revenue, domestic borrowing of Rwf 237.6 billion, Rwf 6.4 billion from net lending and payments, external grants of Rwf 409.8 billion and external loans of Rwf 497 billion.
Total tax revenue collections have been projected to reach Rwf 1,535.8 billion in the fiscal year 2019/20. This amount will exceed the estimated figure of Rwf 1,373.1 billion to be achieved in the fiscal year 2018/19 by Rwf 162.7 billion while Non-tax revenue collections to the Treasury have been estimated at Rwf 190.4 billion; which is 7.9 billion Rwf lower than the projected amount of Rwf 198.4 billion in the fiscal year 2018/19.
Total expenditures in the fiscal year 2019/20 is projected at Rwf 2,876.9 billion, made up of recurrent expenditure of Rwf 1,424.5 billion, Development expenditures of Rwf 1,152.1 billion, net lending outlays of Rwf 244.1 billion, repayment of arrears amounting to Rwf 30.6 billion and accumulation of deposits of Rwf 25.5 billion.
The resources allocation for 2019/2020 and in the medium term was guided by the strategic objectives to achieve the transformational goals of NST 1 set out in the three pillars namely: Economic Transformation, Social Transformation, and Transformational Governance. The key interventions and projects under NST 1 pillars have been funded as follows:
The Budget Framework paper will provide the basis for the preparation of the 2019-20 budget which will be read in June 2019.
BFP is a document outlining government economic policies over the medium term that helps lay the foundations of the next fiscal budget. It is prepared in accordance with article 32 of the Organic Law on State Property and Finances and outlines the Government’s macroeconomic and fiscal policy stance as well as the budget policy over a 3-year horizon.
Outlining key priorities for 2019/20 fiscal year and the medium term Minister Ndagijimana told Parliamentarians that policies and strategies over the medium term are built on the Government’s ambition to raise Rwandans high living standards and reach the upper middle-income status by 2035 and high income by 2050.
This is reflected in the blueprint of the Vision 2050 under development. The National Strategy for Transformation (NST1), which has been developed as implementation instrument of the remainder of Vision 2020 and for the first four years of the Vision 2050, provides the direction of the policy objectives over the medium term.
Minister Ndagijimana noted that government will continue to promote import substitution and diversify exports with the aim of reducing the exposure to external shocks and imbalances over the medium term.
“The implementation of Made in Rwanda policy will continue to play a key role in narrowing the current account deficit in the short to the long run and help to consolidate private sector domestic activities, create jobs and boost economic growth,” Minister Ndagijimana said.
Key targets and interventions will include growing traditional exports, promoting nontraditional exports, growth of the service sector as well as cross-cutting interventions such as the promotion of made in Rwanda, developing of cross border and trade logistics infrastructure and development of industrial parks among others.