The New Times (Kigali)

15 June 2012

Rwanda: How Govt Allocated 2012/13 Budget

The 2012/13 financial year budget that was read yesterday by Finance Minister John Rwangombwa, saw a number of key clusters allocated billions of francs.

Compared to last year's budget, this year's financial plan increased to more than Rwf1.3 trillion.

According to Rwangombwa, the budget's top priority was the infrastructure cluster, whereby the sector was allocated Rwf 321.2 billion, about 23.3 percent of the total budget, and represents a 25% increase compared to the 2011/12 revised budget.

The money will be channelled to financing of key projects like finalising construction of 83.1 km Kigali-Ruhengeri road, rehabilitation of 30Km Kitabi-Crete Congo/Nil road, 77.8km Kigali-Gatuna road, paving the road of 50km Cyangugu (Rusizi)-Ntendezi-Mwityazo (Kivu belt road ) and expropriations for Bugesera International Airport.

Others are construction of a 25km access road to Bugesera Airport, the extension of Kigali International Airport, Kamembe Terminal and runway, construction of access road to Tumba College, and renovation of 4 km Huye Urban Roads among others.

Still in the area of infrastructure, the money will also be used for the expropriation of people affected by the One Stop Border Post (OSBP) at Gatuna, refurbishment of Rusumo OSBP, development of Micro Hydro sites estimated to produce 24 megawatts (MW), enhancement of operations of Carnegie Mellon University and Kigali Techno pole to boost ICT for private sector development.

Increasing the national power generation by 15 MW from Peat in Bugarama, Rusizi district and speeding up the exploitation of geothermal resource are also budgeted in the infrastructure cluster.

Health facilities, classrooms

The human development and social cluster was allocated more money compared to other areas.

Rwf451.1 billion, about 32.7 percent of the total budget has been allocated to the cluster compared with the 2011/12 revised budget which was 26 percent increase in resource allocation.

The key projects and programmes to be financed include construction of seven health centres in Kigali City and building of Nyabikenke, Muhororo, Rutare, Karongi and Kirehe Phase III districts' hospitals, operationalisation of the new Mutuelle de santé policy, deployment of more health professionals in hospitals and health centres among others.

Other priorities include increasing access to education through construction of additional new classrooms and latrines, training of teachers in English, procurement of textbooks written in English for primary and secondary levels in order to reduce pupil-textbook ratio, and recruit more qualified teachers.

Promotion of science and technology by putting up more science laboratories in schools, integration of ICT in primary education through the provision XO One Laptop Per child and the promotion of technical vocational education will also be included in the sector.

Fertilisers

However the productive capacities cluster has been allocated only Rwf234.5 billion which represents 17%.

The projects to be financed in this cluster include supporting fertilizer purchase by increasing the supply to over 45,000 tonnes, improving post-harvest storage facilities through warehouse and silo investments and developing over 25,000 hectares of tea and coffee in the Southern Province.

Other programmes to be looked at in the cluster are; supporting job creation (Hangumurimo) program for start-up SMEs and development, planting of 500,000 agro forestry trees and grasses for soil replenishment, construction of terraces in the districts of Rutsiro Nyamasheke and Rusizi.

Developing a pilot industrial park in each province and relocation of Gikondo Industrial Park to the new Special Economic Zone in Kigali as well as providing technical and financial support to Umurenge SACCO.

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