Finance Minister Claver Gatete on Wednesday presented the revised 2017-2018 national budget to Parliament.
The government proposes to revise the budget upwards by Rwf 20.5 billion from the Rwf 2.09 trillion approved by lawmakers in June last year to Rwf 2.12 trillion. Gatete said the revision concerns both resources and expenditure.
“Government plans to raise its net borrowing by Rwf 18.9 billion from Rwf 159.1 billion proposed in the regional budget to Rwf 178 billion, which will be used to finance RwandAir’s expansion as well as the restructuring of the State’s investment in Marriot hotel,” Gatete said.
According to the Minister, the increase comes from the sale of treasury bills and bonds as well as a drawdown from strategic fuel reserves.
Tax collection, which was Rwf 662.9 billion in the original budget, is expected to be Rwf 6.5 billion more than projected.
Disbursement of donor grants is on track and amounts to Rwf 168.3 billion, against Rwf 168.8 billion projected for the period.
“External debt stands at 36% of GDP, and domestic debt at 10%, which allows room for more borrowing,” Gatete said.
He also told lawmakers that to cover salaries and operation expenses of newly created ministries and agencies, the government needs Rwf 8.7 billion more, from Rwf 1.033 trillion initially proposed to Rwf 1.04 trillion.
As for the development budget, the government requests an increase of Rwf 9.8 billion from Rwf 772.7 billion in the original budget estimates to Rwf 782.5 billion.
“The mark-up will finance the construction of strategic fuel storage facilities, construction of dams and irrigation systems for increased food production, land acquisition investment in Masaka hospital, provision of basic infrastructure for Gako beef farm project as well as a Government subsidy for the Ntare School of Excellence project, among others,” Gatete said.