Parliament Approve Budget for 2017/18 National Budget

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Claver Gatete,Minister of Finance and Economic Planning

Parliament has approved the 2017/18 budget aiming at reducing to 17 percent its current dependence on donor money.

The House presided over by Speaker of the parliament of Rwanda Mukabalisa Donatille, today approved the draft law determining state finances for the 2017/2018 fiscal year valued at two trillion, ninety four billion nine hundred and ten million, four hundred eighty thousand five hundred forty-five (Frw 2.094,910,480,545).

Claver Gatete,Minister of Finance and Economic Planning while presenting the budget said that Rwanda plans to pull its domestic revenue to 66% to the whole budget plus 17 percent of loans, making the total of 83 percent of national budget. The remaining 17 percent will come from foreign aid.

The theme of this year budget is “Sustainable growth through infrastructure development and promotion of Made in Rwanda budget”.

Gatete said that the government plans to increase domestic revenues is due to Frw 118.9B rise in tax revenue collection from projected Frw 1,081.4B to Frw 1,200.3billion.

The new budget projects foreign direct investment to continue to increase reaching USD 307.2 million, USD 404.4 million and USD 439 million respectively in 2017, 2018 and 2019, from USD 258.9 million in 2016. In both 2018 and 2019, USD 67 million are expected as foreign direct investment and USD 81.8 million as external loans to finance imports for the Bugesera airport.

Total grants are estimated at Frw 356.7 billion compared to Frw 326.6 billion in 2016/17 revised budget #Rwandabudget2017.

The 2017/18 domestic revenues are projected at Frw 1,375.4B & rises to Frw 1,738.2 B representing 83% of total budget.

Total domestic resources are estimated at FRW 1,375.4 billion, which accounts for 66% of the total budget.

Minister Claver Gatete re-affirmed that Rwanda’s economy is expected to grow by 6.2% in 2017 and 6.8% in 2018 Rwanda budget 2017.

He also noted that the economic plans enshrined in 2017-18 budget and medium term will focus on promoting investments and locally made products #Rwandabudget2017.

Development budget is estimated at Frw 772, 7 B in 2017/18 from Frw 777, 9 B in the 2016/17 budget, a Frw 5.2b reduction. The rise is due to rise in wages and salaries of Frw 44.9billion from new institutions and organization of presidential elections.

Recurrent expenditure is set to rise by Frw 131 B from Frw 994.0B in 2016/17 revised budget to Frw 1,125billion in 2017/18.

The government plans to invest heavily in infrastructure projects such as constructing and upgrading roads and airports, rolling out electricity access in more areas, providing clean water to more citizens, and preparing more industrial parks upcountry.

“We are undertaking significant investments in infrastructure, whether it’s water and sanitation, electricity, or roads because we think these infrastructural projects are critical for economic transformation,” Gatete told the legislators.

In a bid to boost domestic industries, Rwanda has put a zero taxation regime on importing goods most needed by local industries such as garments and leather processing machines.

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