Rwanda's 2009/10 budget spending rises 24 pct

By Hereward Holland

KIGALI (Reuters) - Rwanda's government will raise spending in the tiny central African country by 24 percent in the 2009/10 fiscal year compared to calendar year 2008, to stimulate the economy and safeguard against the global slump.

Finance Minister James Musoni presented Rwanda's budget to parliament on the same day as East African neighbours Kenya, Uganda and Tanzania for the first time as Kigali aligned its fiscal timetable with the rest of the region.

"We have raised our budget compared to 2008 by 24 percent so this increase is going to help us inject more money into the economy and act as a stimulus and safeguard," Musoni told reporters after addressing parliament on Thursday.

Spending will increase to 838 billion francs, three percent more than the 812.4 billion francs proposed in the draft budget released in April.

Recurrent expenditures will be 481 billion francs, and development spending 342 billion. The remainder goes on net lending and arrears payment, according to the budget documents.

Musoni said the government was encouraged by Rwanda's strong economic performance in the first quarter of 2008, though he did not give growth figures for that period.

The minister predicted 5-6 percent GDP growth for 2009, compared to 11.2 percent in 2008.

That would still be a healthy growth level, compared to global rates this year, though Rwanda is coming from a low base after the economic devastation of its 1994 genocide.