MPs vote the State Finance Law of 2020/21 Fiscal Year

|   Chamber Of Deputies

On 29th June 2020, the Plenary Sitting of the Chamber Deputies chaired by Rt. Hon. Mukabalisa Donatille voted State Finances Bill of the 2020/2021 fiscal year and urged the public institutions to use it appropriately so that the country may meet its economic and social transformation targets.

While tabling the Committee’s report, Hon. Munyaneza Omar, Chairperson of the Standing Committee on National Budget and Patrimony announced that the Government will spend Frw 3,245.7 billion in the 2020/2021 Fiscal year, an increase of Frw 228.6 billion compared to Frw 3,017.1 billion in the 2019/20 revised budget.

The FY 2020-21 budget will be financed through domestic resources worth Frw 1,969.8 billion representing 60.7% of the entire budget. The remainder of the budget will be funded through external sources worth Frw 1,275.9 billion which accounts for 39.3% of the total budget. These include grants worth Frw 492.5 billion and loans worth 783.4 billion. Equally to the projected resources, the Government will spend Frw 3,245.7 billion in 2020/21. Recurrent expenditure will take up Frw 1,583.0 billion which accounts for 48.8% of the total budget.

Government’s expenditure policies in fiscal year 2020/21 are guided by National Strategy for Transformation priorities and objectives while ensuring appropriate allocation by promoting made in Rwanda to reduce the trade deficit and build economic resilience.

It is this regard that the Economic Transformation pillar takes the capital share of the resources at Frw 1,802 billion amounting to 55.5 % of the total budget. The social transformation will take up Frw 960.4 billion (29.6%) while Transformational Governance is allocated Frw 482.7 billion representing 14.9% of the total budget.

Some of the priority areas including the recommendations of Members of the Parliament formed the basis for resource allocation in 2020/21 fiscal year are as follows: strengthening health system by increasing access to quality health services for all; increasing agriculture and livestock productivity; strengthening Social Protection programs by scaling up coverage; promote employment through investment in public infrastructure; support businesses affected by COVID-19 to recover, boost their business and contribute to the national economic growth; support Made in Rwanda policy to reduce the trade deficit and build economic resilience; promote digital infrastructure and technologies to improve service delivery; improve access to quality education; continue the eradication of malnutrition and stunting and strengthen disaster preparedness and management.