Government plans to spend Frw 2,876.9 billion in the 2019/2020 Fiscal year, an increase of Frw 291.8 billion compared to Frw 2,585.1 billion in the 2018/19 revised budget, the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana has said.
Presenting the 2019-20 National Budget before both Chambers of Parliament this 13 June 2019, Minister Ndagijimana pointed out that generally, economic plans enshrined in the 2019/20 budget as well as medium term will focus on “industrialization for job creation and inclusive economic growth” in line with the EAC theme of “Transforming Lives through Industrialization and Job creation for Shared Prosperity”.
Government expects to finance the 2019-20 budget through domestic resources worth Frw 1,963.8 billion representing 68.3% of the entire budget. This represents an increase of Frw 268.3 billion compared to Frw 1,695.5 billion in the 2018/19 fiscal year revised budget. Tax revenue collections are estimated at Frw 1,535.8 billion which accounts for 53.4% of the total budget while non tax revenue is estimated at Frw 190.4 billion representing 6.6% of the total budget.
The remainder of the budget will be funded through external sources worth Frw 906.7 billion which accounts for 31.5% of the total budget. These include grants worth Frw 409.8 billion (14.2%) and loans worth 497.0 billion (17.3%).
Total expenditures for the fiscal year 2019/20 are projected at Frw 2,876.9 billion. Recurrent expenditure is projected at Frw 1,424.5 billion, which accounts for 49.5% of the total budget for 2019/20 fiscal year.
Spending on development projects is projected at Frw 1,152.1 billion, which represents 40% of the total budget. In addition, allocation of Frw 244.1 billion on net lending represents 8.5% of the total budget. Total development budget, including net lending to public companies amounts to FRW 1,396.2 billion, which represents 48.5% of the total budget.
Minister Ndagijimana pointed out that the share of recurrent budget in the total budget of 2019/2020 is reduced by 1% compared to 2018/2019, while the share of development budget is increased by 1%, which confirms the Government’s effort to contain recurrent expenditures and to focus on development spending.
Domestically financed projects are estimated at Frw 694.0 billion, while externally financed projects are projected at Frw 458.2 billion. Frw 30.6billion is allocated on payment of arrears and Frw 25.5billion reserved foraccumulation of deposits to boost the Government reserves, and both allocations represent 2% of the total budget.