Government upbeat on budget financing through domestic revenues

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m_Government upbeat on budget financing through domestic revenues

The government is upbeat that it will raise 62.4 percent of the Rwf 1949.4 billion total budget for 2016/2017 fiscal year from domestic revenues as it had announced this month.

Minister of Finance Ambassador Claver Gatete is hopeful with strategies in place to boost domestic revenues which amount to Rwf 1216.4 billion of the total expenditure will be realized.

This comes at the time, experts were skeptical on whether the government is likely to raise the domestic revenues after it  further increased its contribution to total budget by Rwf 40.9 billion from  Rwf 1175.5 billion 2015/2016.

One of the strategies, the Minister says is to increase tax revenues which are expected to  contribute Rwf 1,071.6 billion, 55 percent of the total domestic revenues with the rest from non-tax revenues ( Rwf 110.8 billion) and domestic loans (Rwf 34 billion).

‘We have made good progress by doubling our revenue collection as a proportion of GDP to 15 percent of GDP over the last seven years,” Gatete said on Friday.

He adds, “This will require scaling up of institutional capacity to effectively mobilize and collect domestic revenues.”

This, Minister Gatete says this will be achieved in 2016/20107 fiscal year through upping efforts on the use of Electronic Billing Machines-EBMs which are vital in boosting Value Added Tax- VAT compliance.

“The government will also revise the Tax procedure Law to ease tax compliance,” Gatete adds.

Nevertheless, the government still believes that the Official Development Assistance (ODA) will continue to play a vital role towards financing the implementation of the post- 2015 development agenda.

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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