The revised budget proposal tabled by the Minister of Finance and Economic Planning, today in Parliament, has put forward financing adjustments that will ensure implementation of the second Economic Development and Poverty Reduction Strategy (EDPRS2) stays on track.
The proposal which considered changes in revenue sources as well as corresponding expenditure adjustments revised the National Budget upward by RwF 6.4 billion to RwF 1759.6 billion from RwF 1753.3 initially approved by parliament in July 2014.
On the resources side, there will be an increase of RWF 11.9 billion of domestic revenue resources and increased domestic financing (domestic public borrowing) of RWF 35.1 billion, and a net total reduction of RWF 40.6 billion of total Official Development Assistance (ODA) disbursements.
The tax revenue estimates have been reduced by RwF 12.2 billion from RwF 906.8 billion to RwF 894.6 billion. The reduction is due to the reclassification of a portion of the Local Government taxes collected by Rwanda Revenue Authority under non tax revenue. Non tax revenue has been revised upward from RwF 78.8 billion to RwF 102.9 billion as a result of the reclassification of a portion of local government fees (RwF 15.2 billion) and increase in peace support operations receipts (RwF 8.9 billion).
Grants projections have been revised downward to RwF 414.4 billion, RwF 130.4 billion lower than the original estimate of RWF 544.8 billion. The revised figure reflects changes in both donor budget support funds and capital grants disbursements.
Total loans have been raised to RwF 212.6 billion from RwF 122.8 billion indicating an increase of RwF 89.9 billion. This revision reflects the inclusion of RWF 107.1 billion of budgetary loans on account of the expected disbursements from the World Bank and AFDB due to structural change in financing by both institutions as well as a reduction in project loans from RWF 122.8 billion to RWF 105.5 billion.
On the expenditure front, the recurrent expenditure will reduce by RwF 5.6 billion from the original RwF 848.2 billion to RwF 842.6 billion. Development budget was originally projected at RwF 790.4 billion comprising RwF 451.2 billion of domestically financed portion and an externally financed portion of RwF 339.2 billion. This estimate has been revised downward by RwF 6.1 billion to RwF 784.2 billion. Spending on externally financed projects slightly increases by RwF 7.4 billion from RwF 339.2 billion to RwF 346.7 billion. The allocation for domestically financed projects increases by RwF 13.6 billion from RwF 451.2 billion in the original budget to RwF 437.6 billion in the proposed revised Budget.