The Minister of Finance and Economic Planning Claver Gatete today presented to both chambers of parliament, the Budget Framework Paper (BFP) and the medium term budget estimates for 2017/18 -2019/20.
BFP is a document outlining government economic policies over the medium term that helps lay the foundations of the next fiscal budget.
Minister Gatete told Parliamentarians that the BFP for 2017/18 – 2019/20 periods underscores Government’s commitment to address external sector imbalances from global shocks through increasing exports and promotion of imports-substitution measures to foster economic growth.
Government’s top priorities for growing exports will be to diversify exports, increase value addition and promote ‘Made in Rwanda’ through collaboration with private-sector.
“In the short to long run, promotion of Made in Rwanda will help to consolidate private sector domestic activities, create jobs and boost economic growth.” Minister Gatete said.
Key targets and interventions will include growing traditional exports to 19%, promoting non-traditional exports, growth of the service sector by 33% as well as cross cutting interventions such as promotion of made in Rwanda, developing cross border and trade logistics infrastructure and development of industrial parks among others.
Proposed 2017-18 Budget
The proposed total budgeted resources for fiscal year 2017/18 amount to Frw 2,094 billion, which is Frw 140.7 billion higher compared to Frw 1,954.2 in the 2016/17 revised budget. The resource allocation is line with EDPRS 2 priorities and it is expected to contribute towards attaining EDPRS 2 targets as well as forming the basis for Vision 2050 and EDPRS 3
The 2017/18 domestic revenue is projected at Frw 1,316.8 billion; representing an increase of Frw 130.5 billion compared to Frw 1,186.3 billion in the 2016/17 revised budget. Total grants are estimated at Frw 356.7 billion compared to Frw 326.6 billion in 2016/17 revised budget indicating Frw 30.1 billion increase.
Total external loans are estimated at Frw 362.8 billion in 2017/18 and shows a decline of Frw12.3 billion compared to the estimate in 2016/17 revised budget on account of revised projections based on the status of the execution of projects.
Recurrent expenditure is expected to increase by Frw 111.7 billion from Frw 1,028.0 billion in 2016/17 revised budget to Frw 1139.7 billion 2017/18 fiscal year. This rise is attributed to increase in wages and salaries of Frw 42.7 billion, resulting from the implementation of the new teachers’ statute, new government agencies as well as restructuring.
Development budget is estimated at Frw 757.2 billion in 2017/18 from Frw 741.9 billion in the 2016/17 budget representing Frw 15.3 billion increase. Domestically financed development projects expenditure is set to increase by Frw 46.7 billion from Frw 398 billion in 2016/17 to Frw 444.7 billion in 2017/18. The increase will be used to purchase of strategic stocks for food security, construction of several valley dams and cater for expropriation for the construction of the Bugesera airport