Rwanda Budget Revision - Shortfall In Revenue Collection, Reduced Aid Donations, And More Debt
February 28, 29015
As the CEO of Rwanda, President Paul Kagame, begins his lecture to a fearful gathering at the annual retreat 2015, he should not overlook the Revised Budget tabled by the Minister of Finance in Parliament on February 25, 2015.
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| President Paul Kagame |
The budget is bad news: 1) Revenue collection has fallen short of 2014 estimates, 2) donors are less generous, and so the regime 3) is turning to more and more debt.
Here are a few highlights from the revised budget.
• Overall the 2014/2015 budget has increased from RwF 1753.3 billion to RWF 1759.6 billion - equivalent to US$2.5 billion.
• Tax revenue estimates have fallen short by RwF 12.2 billion from RwF 906.8 billion to RwF 894.6 billion - equivalent to US$1.3 billion.
• Donor grants have shrunk from the original estimate of RWF 544.8 billion (US$788 million) to RWF 414.4 billion - equivalent of US$600 million. Donors in other words are giving the regime less than originally anticipated by US$188 million.
• Total loans have been raised from RWF 122.8 billion to RwF 212.6 billion - equivalent to US$ 307 million.
Kagame's economic lion is proving to be a mouse. Let us hope the retreat is not the usual posturing and phraseology, and instead addresses substantive matters by first acknowledging the difficulty situation facing Rwanda.
Article by Dr David Himbara