Kagame’s 2019/2020 Budget Proves Rwanda Is A Banana Republic Still Heavily Dependent On Donor Grants And Borrowing

By David Himbara

General Paul Kagame budget for 2019/2020 will amount to FRW 2,876.9 billion, which is equivalent to US$3.1 billion. Only Frw 1,726.2 billion be financed from domestic tax and non-tax revenue, equivalent to US$1.9 billion.

The rest totaling US$1.2 billion will come from donor grants, external loans and domestic borrowing. In other words, the Rwandan tax base can only generate and finance 61.3% of the budget. Nearly 40% of the budget is funded by donor grants, external loans and domestic borrowing.

Kagame’s Singapore of Africa remains a banana republic heavily dependent on donations and loans.

Lastly, Kagame budget for 2018/2019 was Frw 2,443.5 billion or US$2,6 billion compared to US$3.1 billion in 2019/2020. Therefore, this year’s increase in the budget over last year is a mere US$500 million. With a huge fertility rate at 4.2 children per woman, that is a drop in the sea — no increase at all.