April 30, 2019 / 2:58 PM / 4 months ago

Rwanda to increase spending by 11 percent in 2019-20

KIGALI, April 30 (Reuters) - Rwanda plans to increase government spending by 11 percent in the 2019-20 fiscal year to 2.87 trillion Rwandan francs ($3.17 billion), the finance minister said on Tuesday.

Donors will fund 14 percent of the budget while the rest will come from revenue and debt, Uzziel Ndagijimana told parliament while presenting the draft budget.

The central African nation has posted high growth rates over the past decade, mostly fuelled by business-friendly policies and strong inflows of foreign investment.

The government expected to collect 1.72 trillion francs in revenue during the year.

“Total domestic revenue plus the external debt represents a share of 85.8 percent of the 2019-20 budget,” Ndagijimana said, adding that external debt is set grow by 7 percent to 497 billion francs, representing 17 percent of the budget.

The government is planning to spend 1.15 trillion francs on development of which 244.1 billion will be used to finance government projects.

These include the completion of Bugesera international airport, less than an hour’s drive from Rwanda’s capital Kigali, and the expansion of the national carrier RwandAir.

Rwanda’s economy grew 8.6 percent last year and is projected to expand by 7.8 percent in 2019 and 8.1 percent in 2020, Ndagijimana said.

Rwanda, like other East African nations, will present its final budget in June. ($1 = 905.0097 Rwandan francs) (Reporting by Clement Uwiringiyimana; Editing by Omar Mohammed and Ed Osmond)

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