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The 2019-20 National Budget to focus on NST-1 Strategic Objectives

Posted on 13.06.2019

The 2019-20 National Budget to focus on NST-1 Strategic Objectives

Kigali, June 13, 2019: Government plans to spend Frw 2,876.9 billion in the 2019/2020 Fiscal year, an increase of Frw 291.8 billion compared to Frw 2,585.1 billion in the 2018/19 revised budget, the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana has said. 

Presenting the 2019-20 National Budget in Parliament today, Minister Ndagijimana pointed out that generally, economic plans enshrined in the 2019/20 budget as well as medium term will focus on “industrialization for job creation and inclusive economic growth” in line with the EAC theme of “Transforming Lives through Industrialization and Job creation for Shared Prosperity”.


Government expects to finance the 2019-20 budget through domestic resources worth Frw 1,963.8 billion representing 68.3% of the entire budget. This represents an increase of Frw 268.3 billion compared to Frw 1,695.5 billion in the 2018/19 fiscal year revised budget. Tax revenue collections are estimated at Frw 1,535.8 billion which accounts for 53.4% of the total budget while non tax revenue is estimated at Frw 190.4 billion representing 6.6% of the total budget.

The remainder of the budget will be funded through external sources worth Frw 906.7 billion which accounts for 31.5% of the total budget. These include grants worth Frw 409.8 billion (14.2%) and loans worth 497.0 billion (17.3%).


Total expenditures for the fiscal year 2019/20 are projected at Frw 2,876.9 billion. Recurrent expenditure is projected at Frw 1,424.5 billion, which accounts for 49.5% of the total budget for 2019/20 fiscal year.

Spending on development projects is projected at Frw 1,152.1 billion, which represents 40% of the total budget. In addition, allocation of Frw 244.1 billion on net lending represents 8.5% of the total budget. Total development budget, including net lending to public companies amounts to FRW 1,396.2 billion, which represents 48.5% of the total budget.

Minister Ndagijimana pointed out that the share of recurrent budget in the total budget of 2019/2020 is reduced by 1% compared to 2018/2019, while the share of development budget is increased by 1%, which confirms the Government’s effort to contain recurrent expenditures and to focus on development spending.

Domestically financed projects are estimated at Frw 694.0 billion, while externally financed projects are projected at Frw 458.2 billion.  Frw 30.6 billion is allocated on payment of arrears and Frw 25.5 billion reserved for accumulation of deposits to boost the Government reserves, and both allocations represent 2% of the total budget.

 NST-1 and Resources Allocation

Minister Ndagijimana told parliamentarians that Government’s expenditure policies in fiscal year 2019/20 are guided by National Strategy for Transformation (NST-1) priorities and objectives while ensuring appropriate allocation to enhance service delivery across sectors. To this end, the Economic Transformation pillar takes the lion’s share of the resources at Frw 1,636 billion amounting to 56.9 % of the total budget. Social transformation will take up Frw 781.7 billion (27.2%) while Transformational Governance is allocated Frw 458.7 billion representing 15.9% of the total budget.

In line with NST-1 strategic objectives, some of the priority areas agreed during both planning and budgeting consultations formed the basis for resource allocation in 2019/20fiscal year. These include:

·         Supporting projects and activities that contribute to the creation of 213,198 decent and productive jobs,

·         Revision of secondary cities’ master plans and improving transportation infrastructure and services in urban and rural areas.

·         Improving air transport infrastructure

·          Promoting a Knowledge-based Economy through operationalization of Rwanda Innovation Fund and continuing support to Centers of Excellence

·         Promoting industrialization and exports

·         Scaling up agriculture and livestock productivity

·         Increase electricity access to households and productive uses and socio-economic facilities;

·         Improving access to quality education

·         Increasing accessibility to quality health for all

·         Accelerating graduation from poverty by scaling up VUP to reach 158,554 households

·          Eradicating malnutrition and stunting by distributing Fortified Blended Foods to 14,679 pregnant women and 86,531 children, supporting 12,555 under-five malnourished children through milk distribution

·         Improving service delivery through scaling up services offered online

·         Strengthening Justice, Law and Order

The 2019/2020 draft finance law conforms to the 2019/20 – 2021/22 Budget Framework Paper that was presented to Parliament on April 30, 2019 and amended to reflect the recommended actions by the Parliament as submitted on May 30, 2019.


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