EAST AFRICAN BUDGETS – WHAT WE CAN LEARN FROM THEM

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In 2014, the annual national budget of Kenya was $20 billion; Tanzania’s $12 billion; Uganda’s $5.3 billion, and Rwanda’s $2.6 billion.

By 2016, Kenyan budget stood at $22.6 billion; Tanzania’s $13.5 billion; Uganda’s $7.5 billion.

Rwanda’s budget was exactly the same for 2014 and 2016 – $2.6 billion. This is evidently stagnation.

So if Rwandan economy is booming why the budget remains constant? This is another proof of lies as compiled in their statistics each and everything is an increase only when they are presenting their numbers but on ground ,as we are told, a simple decrease….

”The Minister of Finance and Economic Planning, Claver Gatete, presented to a joint parliamentary session the budget statement for the year 2016/17. Minister Gatete told parliamentarians that Government will spend Frw 1949.4 billion in the 2016-17 fiscal year, Frw 140.6 billion higher than Frw 1808.8 billion spent in 2015/16.

Government will finance 62.4% of its budget through domestic revenues amounting to Frw 1216.4 billion. This represents a slight increase of Frw 40.9 billion compared to Frw 1175.5 billion spent in 2015/16.

The remainder of the budget will be funded by external resources worth Frw 733 billion (37.6% of total budget). This represents Frw 99.7 billion increase compared to Frw 633.3 billion in the 2015/16 revised budget.

External resources will come from budgetary grants (Frw 219.3 billion), project grants (Frw 146.0 billion) and foreign borrowing (Frw 367.7 billion)”.

FRW 733 billion of foreign donations is equivalent to USD 935,300,317. Rwandan budget is exactly equivalent to an increase of Kenya budget (2.6 Billions)

Totally I failed to understand this budget. Any way by reading how the total budget will spent, Minister Gatete Claver failed to mention the total amount of reccurent budget and the total amount of development budget!!!! Is he still waiting the instructions from Supreme chief buudget of Rwanda or? Read:”Expenditure allocation in the 2016/17 budget and the medium term has been made according to the second Economic Development and Poverty Reduction Strategy (EDPRS2) objectives and a large share has been allocated to the EDPRS2 sectors as follows.

Thematic areas have been allocated Frw 1,071.8 billion representing 55% of the total budget for 2016/17 fiscal year. Economic Transformation takes the lion’s share with Frw 517.1 billion (27%), rural development will be allocated Frw 256.5 billion (13%), Productivity and Youth Employment gets Frw 106.0 billion (5%) and Accountable Governance takes Frw 192.2 billion (10%). The foundational Sector which comprises of health, education, justice, peace, stability, food security, macroeconomic stability and public finance management among others will be allocated Frw 877.6 billion representing 45% of the entire budget

Its a cooked budget at best!

By David Himbara & Co

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