Bloomberg News

Rwanda Plans to Narrow Budget Gap on Increased Taxes and Grants

June 07, 2011

June 8 (Bloomberg) -- Rwanda plans to narrow its budget gap to 2.3 percent of gross domestic product in the year through June 2012 on increased donor grants and tax revenue, said Fred Quarshie, an adviser to the Minister of Finance and Economic Planning.

The shortfall will shrink from 4.2 percent in the current fiscal year, Quarshie said by phone yesterday.

The deficit before grants will narrow to 13.7 percent of GDP from 15 percent, Quarshie said. Grants to the government will increase 19 percent to 444.7 billion Rwandan francs ($743 million), while tax revenue is expected to rise by 57.7 billion francs to 501.4 billion.

Spending will increase to 1.12 trillion francs from 984 billion, according to a statement from the Ministry of Finance yesterday. The full budget will be presented to parliament later today.

--Editors: Philip Sanders,

To contact the reporter on this story: Heather Murdock in Kigali at hmurdock1@bloomberg.net.

To contact the editor responsible for this story: Philip Sanders at psanders@bloomberg.net.


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