Government of Rwanda with referring to its National strategy of transformation(7 Years Government Program) have announced the Budget of Rwanda during 2023-24 where will emphasize on NST 1 Pillars (Economic Transformation, Social transformation and Transformational governance
GOVERNMENT OUTLINES SPENDING PRIORITIES FOR 2023-24
Every year, Minister of finance and economic planning present in front of the parliament budget framework paper (BFP) and adding medium term expenditure framework of the following years,
The budget for the fiscal year 2023/24 will reflect the medium term fiscal path, and will emphasize on reaching on NST 1 (National strategy for transformation)…
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Despite ongoing economic recovery, Rwanda is still dealing with COVID-19 pandemic effects, climate change, high inflation, ongoing supply chain issues caused by Russia-Ukraine war among other economic challenges. However, the Government will continue to champion economic recovery through supporting businesses affected by Covid-19 and creating jobs. On top of that, key investments in education, healthcare, ICT, and agriculture will be at the forefront of the ongoing government effort to invest in Rwanda’s future, through the National Strategy for Transformation.
Rwanda’s economy is projected to grow by 6.2 percent in 2023 compared to 8.2% in 2022. owing to global uncertainties, and by 6.7 and 7 percent in 2024 and 2025 respectively.
Proposed 2023-24 Budget
The proposed total resources estimated for fiscal year 2023/24 amount to Frw 5,030.1 billion, representing Frw 265.3 billion or 6% increase compared to Frw 4,764.8 announced in the 2022/23 revised budget.
The projected budget is comprised of Frw 3,151 billion of revenue which represents 63% of the total budget, external grants of Frw 652.1 billion representing 13% of the entire budget and external loans will amounting to Frw 1,225.1 billion or 24% of the total budget.
On the expenditure front, the 2023/24 budget is projected to be Frw 5,030.1 billion. Development budget and policy lending is projected at Frw 2,119.3 billion representing 42% of the budget while recurrent budget is estimated at Frw 2,910.8 or 58% of the total envelop.
Key priorities for the 2023/24 national budget will include strengthening the health system; increasing agriculture and livestock productivity; scaling up social protection coverage; improving the quality of education, creating of employment opportunities through investment in public works and support to micro, small, medium and large enterprises affected by COVID-19 through the economic recovery fund and manufacture to build and recover programs.
Other interventions will include support for Made in Rwanda; promotion of digital technologies to improve service delivery; improving access to quality education; eradication of malnutrition and stunting and strengthen disaster preparedness and management among others
Notes to the Editor
BFP is a document outlining Government economic policies over the medium term that helps lay the foundations of the next fiscal budget. It is prepared in accordance with article 34 of the Organic Law on public finance management and outlines the Government’s macroeconomic and fiscal policy stance as well as the budget policy over a 3-year horizon. The 2023/24-2025/26 BFP provides basis for the preparation of the 2023/24 budget which will be read in June this year.
Policies and strategies over the medium term are by and large guided by Vision 2050, National Strategy for Transformation (NST1) as well as the seven-year government program.
Apart of the current Budget, Let us look other planning and Monitoring aspect in Rwanda
KEY STEPS IN PLANNING AND BUDGETING PREPARATION
N.B : The annual planning and budgeting process can be divided into three consecutive phases
| PHASES | MONTHS | ACTIVITIES |
| 1 | 1 – 4 | Setting national priority |
| 2 | 4 – 8 | Strategic planning ( MTEF) |
| 3 | 9 – 12 | Development of national finance law |
SOME IMPORTANT PLANNING PERIOD IN RWANDA
- 1st and 2nd week / October: Issuance of First Planning and Budget Call Circular
- 4th week/ January : Issuance of Second Planning and Budget Call Circular
- 3rd and 4th week / February: Budget consultation meeting with agency on budget priorities and resources allocation.
- 1st and 2nd week / June : Submission of final draft imihigo
- 3rd and 4th week/ June :Approval of finance law by Parliament.
FIRST PLANNING AND BUDGETING CALL CIRCULAR is document which issued by MINECOFIN between September and October for both local and central government with aims of giving advance information to facilitate timely coordination and effective planning and it calls for the submission of project proposal from Sector and Ministries.
SECOND BUDGET CALL CIRCULAR is issued between January and early February requiring public entities to prepare detailed budget submissions for following financial year. SBCC includes the total indicative resources envelope derived from the macro fiscal framework consistent with the broad policy objectives and Budget submission formats to assist in preparation of finance law.
1.8 SOME PLANNING CONCEPTS
GOALS/ IMPACTS : are the long term results or effects that an institution / organization want to achieve in future and these results are measured at population level.
OUTCOME/ PURPOSE: are the short term results or changes measured at population level. OUTCOME is not budgeted
OUTPUTS: are the direct or immediate physical results from using inputs and development intervention. OUTPUTS are budgeted.
ACTIVITIES: are tasks carried out to implement and deliver specific outputs.
INPUTS: are mental efforts, human and financial resources , physical facilities used to produce output.
PERFORMANCE INDICATOR : a variable which is used to measure the change or extent of performance. NB: This indicator must be SMART, CREAM AN SPICED.
- SMART means Specific, Measurable, Achievable , Realistic and Time bound
- CREAM:
Clear: indicator should be precise and unambiguous
Relevant: it should be appropriate to the subject and evaluation
Economic: it should be attained or available at reasonable cost
Adequate: the availability to provide sufficient information on performance
Monitorable : it should easy to be monitored and amenable to independent validation
- SPICED
Subjective: key informants can contribute by providing the views or insights that can be used to save critical resources
Participatory: the indicator should be developed with consultation of stakeholders
Interpreted and communicable: the indicator should be interpreted and communicated to different stakeholders
Cross checked and compared: Validity of indicator should be cross checked by comparing it with multiple indicators
Empowering: the process of developing and assessing indicator should empower the stakeholders to reflect critically to the change in state across period.
Diverse and disaggregated: the indicator should be diverse in order to capture a wide range of phenomenon , group ,process,….
Baseline : is the information you have about the situation before you do anything ( previous information about situation ).
Targets : are the objectives to be attained in certain period of time. it is the indicator expressed in figures or qualitative data .
STRATEGY : Plan of action to achieve a particular goal. it is action oriented
POLICY : Principles to guide decision to be taken in order to achieve a rational outcome. It is decision oriented
Operational plan/Action plans: It indicates the day-to-day activities of an organisation or project. ( day to day plan for accomplishment of planned activities). it is prepared by middle level management
Tactical planning : it indicates short-term activities required in achieving the objectives of strategic planning
Milestone : is a subset of target which indicates how target to be achieved is divided into short time ( quarters, semesters ….)
Results based planning: is approach to planning which ensures that all elements of plan are oriented toward achieving the results.
Performance information : is data collected about the performance or results of the project
Project : is a set of many related activities.
Program: means a group of related project
Scenario planning : is a strategic planning method that organization uses to make flexible long term plan by considering future events or conditions that can affect plan and how to respond to those events ( effects). it is also called “contingent plan or plan B”
Integrated planning: is a joint planning exercise that involves participation of all stakeholders.
HOW TO FORMULATE OUTCOMEAND IMPACT, OUTPUT, ACTIVITY AND INDICATOR
- OUTCOME AND IMPACT
(These are indicated by the verbs of change such as improve, reduce , strengthen , increase, decrease …)
Verb in past tense that indicates change + subject
e.g: Improved skills of employees
Reduce child mortality
Decreased climate toxication
- OUTPUT
Subject which specify number or not + verb in past tense
e.g: Cows vaccinated or 10 cows vaccinated
training completed or 100 people trained
House constructed or 5 houses constructed
Seed distributed or 12 MT of seeds distributed
- ACTIVITY
Infinitive verb or verb without “to” + Subject
e.g: train employees or to train employees
Construct house or to construct house
Distribute seeds or to distribute seeds
Vaccinate cows or to vaccinate cows
- INDICATOR
Qualitative or Quantitative variable which is not specified + subject+ past verb
E.g: Number of employees trained
Number of house constructed
Ratio or percentage of students succeeded
N.B: When an indicator is specified , it becomes an “output”at
E.g : Number of cows vaccinated ( Indicator)
100 cows vaccinated ( Output)
1.9 ELEMENTS OF PLAN
- Objectives
- Action
- Resources
- Implementation
PRINCIPLES OF PLANNING
The following principles are selected because of their specific significance to the planning, Monitoring and Evaluation system in Rwanda :
- Results focus: Planning and monitoring and evaluation across all levels within Government will be driven by the need to achieve results, consistent with Results based performance management.
- Sustainable development : Planning at all levels will promote sustainable development. Results for which plans are formulated at all levels will aim to be sustainable – by contributing directly to lasting impacts to the social wellbeing of Rwandans, promoting a sustainable economy and conforming to national environmental policies.
- Realism: The formulation of plans and monitoring and evaluation frameworks at all levels must take into account the resource (human, financial or otherwise) that are or will be available for their execution so that they are achievable within the period set for their implementation. However, this should not limit the ambition to achieve more.
- Participatory and inclusiveness : The formulation of plans at all levels in Central and Local Government will follow a participatory process bringing on board citizens, private sector, civil society at all levels so that priorities relevant to all stakeholders are taken into account
- Comprehensiveness
- Consistency
- Flexibility
- Efficiency ( doing the things right)
- Effectiveness ( doing the right things)
For Your interest You may read also this Article it is more also helpful : https://hugukirwa.com/most-important-tools-used-in-planning-key-instruments-universal-rwanda/
Ref:
- https://www.minecofin.gov.rw/news-detail/government-outlines-spending-priorities-for-2023-24
- https://www.minecofin.gov.rw/fileadmin/user_upload/Minecofin/Publications/REPORTS/Accountant_General/IPSAS_Implementation/New_PFM_Manual.pdf
- SYLLABUS OF PLANNING, MONITORING AND EVALUATION by Gilbert
