The government is facing uphill task of raising at least Rwf100 billion in the next financial year to fund development activities.

According to the Parliamentary Standing Budget Committee, the government faces a funding shortfall in the draft budget because some activities for different institutions have not be allocated resources. The committee’s report also shows there are likely delays in the implementation of presidential pledges.

“An example is a hotel in Ngoma, which was promised by President Kagame sometime back in his outreach programme but still needs around Rwf8 billion to be in place,” reads part of the report.

“The funding gap is big and it will be important for officials from the Ministry of Finance and Economic Planning to help us understand what are issues at hand are and how to address them. We have also realised the issue of funds disbursement, which happens in the last quarter of fiscal year after late collections of taxes,” said Constance Mukayuhi, chairperson of the Standing Committee.

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However, Claver Gatete, Finance Minister, said the government is considering priority projects in addressing the budget deficit adding that allocation will be made based on funds available.

“Local governments mostly districts get part of their money from the central government; from revenues they collect through property and rental tax or trading licences.

Planned activities

Planned activities cannot be affected by late allocation from the government, the money is an addition to what they have,” he said.

Should the proposed budget be approved, the expenditure will increase from Rwf1.762 trillion to Rwf1.768 trillion. Total loans are projected at Rwf233.2 billion ($349.8 million) in the next financial year, which is Rwf20.6 billion ($30.9 million) higher than the Rwf212.6 billion ($318.9 million) in the revised 2014/15 budget.

While total domestic revenue collection in the next financial year are estimated at Rwf1, 038.1 billion ($1.56 billion), of which Rwf938.6 billion ($1.41 billion) is expected to come from tax revenue while Rwf99.5 billion ($149 million) will accrue from non-tax revenue.