The minister proposed an increase in the national budget by Rwf 3,017.1 billion from Rwf 2876.9 billion that was proposed last year in the original budget. He explained that government expenditures will increase from Rwf 1726.2 billion to Rwf 1081.9 billion showing a Rwf 75.7 billion increase.
The National Budget will be revised as a response to changes in recurrent spending, capital expenditure, and lending outlay. “Foreign aid is expected to reduce from Rwf 409.8 billion to Rwf 403 billion.
Dr. Ndagijimana said that the increase in national budget will allow timely payment of salaries to health staff, promoting medical staff and allowing the operations of newly established embassies in Accra, Ghana, Doha in Qatar and Rabat in Morocco. It will also enhance health-based insurance subsidies, milk support programs under the National Early Childhood Development Program as well as planned international sports activities.
In his statement, Ndagijimana told parliamentarians that the budget allocated to government projects will increase from Rwf 1152.1 billion to Rwf 1156.2 billion.
Government investment will increase from Rwf 244.2 billion to Rwf 257.2 billion while domestic resources are projected to increase by Rwf 75.7 billion from Rwf 1726.2 billion.
In general, Minister Ndagijimana noted that in 2019, the Gross Domestic Product (GDP) increased by 10.9% compared to 8.3% recorded in 2018. He explained the increase was brought about by improvements in agriculture, industries and the service sector. Only 9 months into 2019, agricultural yield increased by 5.7%, industries by 17.7% and the service sector by 11%. “On the increase of market prices, during the first and second term of 2019, prices were rated low but in the third term, prices increased on a rate of 2.4% and 6% during the fourth term.”
He announced that there will be a general decrease in market prices due to a great performance in the agricultural sector.
The money supply increased by 11.1% in November 2019 and loans to SMEs increased by 12.5% between December 2018 and November 2019.
However, Ndagijimana noted that the Rwandan currency has lost its value compared to the dollar with a 3.9% depreciation but that it had no significant impact on the foreign exchange market.
In December 2019, Ndagijimana said that government revenues increased from Rwf 871.6 billion to Rwf 907.3 billion showing an additional increase of Rwf 35.7 billion compared to the projected revenues. The increase in government revenues comes from taxation and foreign aid.
Minister Ndagijimana informed parliamentarians that the revised budget for the 2019/2020 fiscal year is part of the revised medium-term Macro-economic framework that aims at continuing the implementation of the National Strategy for Transformation (NST).