Partners increase budget support to Rwanda
Development partners who contribute budget support have committed themselves to continue to do so given that the Rwandan government has shown proper usage of the funds ensuring prosperous economic growth.
This was announced on Tuesday with regard to the outcomes of the Joint Budget Support Review held on May 7 to 8 between the government and development partners. The latter are expected to contribute Frw 297.9 billion or 21.6% of the whole budget of the next financial year starting in July, compared to Frw 279.1 billion or 23.3% of 2011/12 budget. The budget for the next financial year is expected to increase by 15%.
The development partners commended the way Rwanda has been using the budget support in previous years and committed themselves to allocate the amount to prioritized areas that are likely to make the national economy more dynamic.
“The basis of supporting Rwanda is mainly centered on the Economic Development and Poverty Reduction Strategy (EDPRS), the results of which in previous years show how effective the money is being used,” said Nils Warner, the head of German Development Cooperation.
The support is mainly meant to strengthen infrastructure development (especially energy generation and feeder roads), private sector development, social protection like the Vision 2020 Umurenge Project (VUP), empowering justice and education, among others.
The budget support development partners include the African Development Bank, Belgium, European Commission, Germany, the Netherlands, the United Kingdom, the World Bank and USAID and the International Monetary Fund.
John Rwangombwa, the Finance and Planning Minister, explained that the meeting, which takes place twice a year, is the main forum for the government and its partners to discuss the strategic priorities and budget allocations.
The next Joint Budget Support Review is expected to take place in November.