Presentation Outline 1.Overview of 2010/11 2.Budget and Outturn - - PDF document

11/2/2011 1

Presentation Outline

1.Overview of 2010/11 2.Budget and Outturn 2010/11 3.Budget Performance

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4.Conclusion

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Overview of the 2010/11

 The original budget approved by Parliament estimated total revenue and grants at RwF 825.9 bn while total expenditures and net lending was estimated at RwF 952.6 bn.  The overall cash deficit was estimated at RwF 134.7 bn to be financed with RwF 54.8 bn of net foreign financing and RwF 80.1 bn of net domestic financing.  After mid‐year review, the budget was revised with a net i i f R F 18 3 b hil dit

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increase in resources of RwF 18.3 bn while expenditures increased by RwF 35.6 bn.  The overall cash deficit increased by RwF 20.4 bn from RwF 134.7 bn to RwF 155.1 bn. This was to be raised mainly from increased net foreign financing .

2010/11 Budget and Outturn

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2010/11 Revenues

 The revised total revenues were projected at 13.6% of GDP and actual performance reached 14% of GDP:

 Direct taxes benefited from general economic recovery

especially the PAYE.

 Taxes on goods and services performed very well for the

same reasons but also administrative reform measures by RRA.

 International trade taxes performed less than projected due

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to larger than expected imports from EAC.

 Non tax revenues were short of the projected target due to

less than projected dividends to facilitate privatization.

2010/11 Grants

 The total budgetary grants realized were 11% of GDP compared to the revised estimate of 10.8% of GDP:

 More than projected reimbursements by the UN from Peace

Keeping Operations for a new contract.

 Higher than forecasted depreciation of the Rwandan franc

against the dollar.

 Broadening the coverage of project grants in fiscal

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• perations to include Global Fund expenditures.

 Some sector budget support funds however registered some

delays for different reasons.

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2010/11 Expenditures

 The total expenditures and net lending reached 28.5% of GDP against the revised estimate of 28.7% of GDP:

 All categories under recurrent expenditures exceeded the

revised estimates by 0.4% of GDP.

 Under recurrent expenditures, goods and services as well as

transfers registered the larger overspending.

 Capital expenditures were lower than the revised estimate

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by about 0.4% of GDP.

 Net lending was lower than projected by about 0.1% of GDP

due to more than estimated receipts from the sale of Government shares.

2010/11 Financing

 The overall cash requirement of the Government at 3.9% of GDP was about 0.6% of GDP lower than the revised estimate:

 Good domestic revenue performance that exceeded the

revised estimate by 0.3% of GDP.

 More than projected budgetary grants that exceeded the

revised estimated by 0.2% of GDP.

 Lower than projected capital expenditures both for

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domestic and foreign financed capital by about 0.2% of GDP.

 However, delays in disbursement of budget support funds

contributed to increased domestic borrowing to finance the budget as well as the associated costs.

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of General Public Services expenditure is 25% or RwF 204.4 Bn:

 Running costs to some key institutions worth about RwF

25.7 Bn

 Expenditures on coordination of policy and legislative

activities worth about RwF 13.0 Bn

 Block Grant to districts worth RwF 19.9 Bn  Spending on Peace Keeping Operations worth about RwF

34.9 Bn N l di i j h b R F 9 2 B

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 Net lending to strategic projects worth about RwF 9.2 Bn  Running costs for Diplomatic missions including capital

costs worth about RwF 11.4 Bn

 Membership contributions, monetary policy operations,

debt and interest payments worth RwF 50.6 Bn

2010/11 sector performance

 The total primary outlays for 2010/11 were RwF 812.8 Bn against a revised estimate of RwF 805.2 Bn. The share of Education sector expenditure is 17% or RwF 137.5 Bn:

 Teachers’ salaries that took about RwF 38.7 Bn  Transfers for capitation grant worth RwF 15.9 Bn  School feeding worth RwF 4.8 Bn  Construction of new schools as well as repairs to

existing ones took RwF 14.9 Bn

 Transfers for cost sharing in higher education worth

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 Transfers for cost‐sharing in higher education worth

RwF 17.6 Bn

 Transfers for scholarships worth RwF 10.2 Bn  Purchases of text books worth RwF 5.6 Bn  Transfers for TVET worth RwF 4.3 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of Transport and Communication expenditure is 11% or RwF 89.2 Bn:

 Construction and rehabilitation of various roads took

about RwF 15.6 Bn

 Repairs and maintenance of roads worth about RwF

20.6 Bn

 Expenditure on National Backbone Infrastructure

project worth RwF 24.4 Bn

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 Expenditure on Rwandair worth about RwF 25.2 Bn 

Expenditure on National Data Center worth about RwF 3.0 Bn

 Digitalization of Radio and TVR worth about RwF 4.2 Bn  Upgrade of Kigali International Airport RwF 1.2 Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of the Health Sector expenditure is 8% or RwF 63.9 Bn:

 Remuneration and incentives to Health workers took

about RwF 17.2 Bn

 Transfers for subsidization of Health services (Mutuelles)

worth RwF 7.2 Bn

 Transfers for PBF worth about RwF 10.3 Bn  Health equipment and Health infrastructure and Health

transport took about RwF 5.6 Bn

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 Expenditure on family planning and reproductive Health

was about RwF 1.2 Bn

 Construction and rehabilitation of districts hospitals

worth about RwF 4.9 Bn

 Purchase of drugs and consumables worth RwF 1.3 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of Fuel and Energy expenditure is 7.1% or RwF 57.8 Bn:

 Electricity Roll‐out Program took about RwF 6.3 Bn  Construction of Rukarara and Nyabarongo Hydro power

stations took about RwF 5.2 Bn

 Rehabilitation of 3 Micro‐ Hydro power stations of took

about RwF 4.9 Bn

 Energy subsidies worth about RwF 20.7 Bn  Procurement and installation of power transformers

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took about RwF 3.0 Bn

 Electrification of Districts took about RwF 9.1 Bn 

Support for alternative source of energy worth about RwF 0.8 Bn

 Methane Gas project took about RwF 2.4 Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of Agriculture Sector expenditure is 6.0% or RwF 49.0 Bn:

 CIP program to raise productivity to ensure food

security and boost exports took about RwF 12.3 Bn

 One Cow per Family program received RwF 2.7 Bn  Export promotion took about RwF 8.1 Bn  Irrigation and water harvesting projects took about

RwF 6.6 Bn

 M

h i ti t k b t R F 1 6 B

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 Mechanization took about RwF 1.6 Bn  Post harvest handling and storage facilities took

about RwF 2.5 Bn



Support on various research works to improve seeds for crops took about RwF 1.2 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Public Order and Safety is 5.9% or RwF 47.9 Bn:

 Salaries and running costs of Rwanda National

Police worth 14.5 Bn

 Salaries and running costs of Rwanda Correctional

Services worth RwF 8.2 Bn

 Running costs for Judiciary institutions worth about

RwF 9 6 Bn

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RwF 9.6 Bn.

 Construction and rehabilitation of prisons took

about RwF 0.5 Bn

 Rehabilitation of Police Training School took about

RwF 0.2 Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of Defense Sector expenditure is 5.8% or RwF 46.8 Bn: 46.8 Bn:

 Defense salaries that took about RwF 30.6 Bn  Fuel and motor vehicle repairs 2.9  Expenditures on staff training worth about RwF

1.3 Bn

 Acquisition of staff uniforms took RwF 1.3 Bn

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 Acquisition of staff uniforms took RwF 1.3 Bn  Army shop and personnel welfare fund worth

RwF 1.0 Bn

 Rehabilitation of defense infrastructures RwF

3.2 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Industry and Commerce is 4.9% or RwF 40.2 Bn:

 Transfers to RDB for export promotion and tourism

development worth about RwF 12.4 Bn

 Construction of testing laboratories in RBS worth about

RwF 1.3 Bn

 Strengthening of Cooperative movement and through

RCA worth RwF 1.8 Bn

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 Support to SACCOS Micro‐Credit Schemes worth RwF

2.8 Bn

 Expenditure for relocation of Gikondo industrial park

worth RwF 2.8 Bn

 Support to rural small and micro enterprises that took

RwF 0.3 Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Social Protection is 4.5% or RwF 36.9 Bn:

 Transfers to FARG to support vulnerable genocide  Transfers to FARG to support vulnerable genocide

survivors worth about RwF 18.8 Bn

 VUP support to districts for direct support and

cash for work worth RwF 11.0 Bn

 Transfers to demobilization commission to

support re‐integration activities worth RwF 1.9 B

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Bn

 Disaster management operations worth RwF 0.8

Bn

 Support to orphanages worth RwF 0.5 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Land, Housing and Community Amenities is 1.8% or RwF 14.7 Bn:

 Running costs for the Rwanda Housing Authority

worth about RwF 4.3 Bn

 Running costs for the Rwanda Natural Resources

Board worth RwF3.0 Bn

 Support to the systematic Land Registration project

took about RwF 2.2 Bn

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 The fight against “Nyakatsi” Program took about

RwF 3.1 Bn

 Development of urban plans for 5 cities that took

about RwF 0.6 Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Water and Sanitation is 1.8% or RwF 14.7 Bn:

 The rural water supply and sanitation project

(PEAMER) took about RwF 4.0 Bn

 The national water supply and sanitation program

spent about RwF 3.6 Bn

 Support to rain water harvesting took about RwF 0.3

Bn

 Optimization of Nyabarongo Project took about RwF

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p y g j 0.6 Bn

 Rural drinking water quality control project took

about RwF 0.2 Bn

 Funding of studies for Huye, Nyaruguru and Gisagara

districts took about RwF 0.4 Bn

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2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Youth, Culture and Sports is 1.2% or RwF 9.5 Bn:

 Running costs for youth, culture and sports institutions

worth RwF 3.9 Bn

 Construction of Rubavu stadium and acquisition of

artificial turf took about RwF 1.2 Bn

 Support to U‐17 youth football team in Mexico world

cup tournament took about 0.4 RwF

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 Expenditure on FESPAD worth RwF 1.5 Bn  Construction of environmental museum in Rulindo

district worth RwF 0.1 Bn

 Rehabilitation of youth friendly centers worth RwF 0.3

Bn

2010/11 sector performance

 Of the total primary outlays of RwF 812.8 Bn, the share of expenditure on Environmental Protection is 0.5% or RwF 3.8 Bn:

 Running costs to Rwanda Environment

Management Authority worth RwF 2.1 Bn

 Protection of river banks and lake shores took

about RwF 0.6 Bn

 Support to environment demonstration projects

took about RwF 0.3 Bn

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 Support to integrated management of eco‐systems

project worth 0.1 Bn

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Conclusion

 As highlighted before, resources performed better than projected both for domestic revenues and donor grants.  H th d l i t b d t  However, there were some delays in some sector budget support that resulted into high costs for domestic borrowing to finance the budget.  Expenditures witnessed a nominal number of cases of delays in procurement but on the whole, average budget execution by budget agency stands at 95%.

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 About 95% of institution executed at over 80% of their budgets while 78% executed their budgets at over 90%.  The weaknesses observed in 2010/11 will be our focus in implementation of the 2011/12 budget.

Thank you

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