The Ministry of Finance and Economic Planning (MINECOFIN) hosted a Budget Support Harmonization Group meeting which brings together Ministry’s technocrats and development partners to discuss the country’s economic performance and medium term economic forecasts including prioritization and resource allocation.
Chaired by the Permanent Secretary and Secretary to the Treasury (PS/ST) Pitchette Kampeta Sayinzoga, the meeting discussed the 2013/14 budget allocation and the medium term macroeconomic framework.
Presenting the Budget Framework Paper, Elias Baingana the director general of National Budget at MINECOFIN explained that the 2013/14 resource allocations are aligned to achieving the second Economic and Poverty Reduction Strategy (EDPRS2).
“The Major focus is on funding the EDPRS2 emerging priorities that are critical to move Rwanda to the next stage of development and this will take up 50% of the Frw 1.6 trillion budget,” Mr. Baingana told the Budget Support Harmonization Group.
These priorities are divided into four thematic areas which include economic transformation, rural development, productivity and youth employment as well as accountable governance.
Foundational issues such as health, education, social protection, public order and safety among others were given sufficient attention with 42% budget allocation. Reasonable funding (8% of the total budget) was allocated to the support functions.
Addressing the meeting the Permanent Secretary noted that to achieve growth targets of EDPRS2, resource allocations does not only target high impact projects but will also seek to leverage private sector funding. “The private sector will play an important role in realizing growth rates stipulated in EDPRS2 as the country seeks to have a private sector led economy,” Mrs. Pitchette Kampeta Sayinzoga noted.
Special attention has been put into areas such as education, economic affairs and health that are considered to be cornerstone to attaining the middle income status.
Development partners acknowledged the importance of aligning the budget to the EDPRS 2 and pledged to work hand in hand with the Ministry.