KIGALI, June 8 Rwanda plans to raise government
spending by 7 percent in the 2017/18 fiscal year to 2.09
trillion francs ($2.58 billion), its finance minister said on
Claver Gatete told parliament that 17 percent of the budget
will be funded by donors with the rest coming from internal
revenue and borrowing, of which 362.8 billion francs will be
borrowed from outside Rwanda.
"The government's objective is to reduce the reliance on
external donor support especially where grants are concerned.
However, for the time being this support remains vital for our
The government expects to collect 1.20 trillion francs in
revenue during the fiscal year, which runs from July to June, up
from 1.081 trillion in 2016/17.
The minister said 54 percent of the budget of the tiny
central African nation would be used on recurrent expenditure
with an increment of 131 billion francs, part of which will be
used to finance August presidential elections and salaries in
new government institutions.
The government planned to use 937 billion francs on
development projects, an increase of 44.4 percent from the
fiscal year ending June, Gatete said.
The cash will be used for promoting export products,
agriculture and expansion of state-run airline Rwandair,
completing the construction of a new airport and renovation
The money will also go to towards roads, power transmission
lines and water supply, Gatete said.
Rwanda's economy is expected to grow 6.2 percent in 2017 and
6.8 percent in 2018 while inflation is expected to be at 7
percent by the end of 2017, Gatete said in May.
He said inflation would edge down to 6 percent in 2018.
The central African nation has posted soaring growth rates
in recent years mostly fuelled by business-friendly policies and
strong inflows of foreign investment.
($1 = 811.0000 Rwandan francs)
(Reporting by Clement Uwiringiyimana; Editing by George
Obulutsa and Toby Chopra)