"The total recurrent Budget is 125.8 billion, an increase of 21.6 billion or
17%. The Development Budget is increased by 22% to 72.4 billion. The
Total Budget (including arrears debt and net lending) increases by 19%
from 187.5 billion to 228.6 billion.

In 2001, external disbursement totalled some US$84 million in recurrent budget support from major donors.
As I have mentioned in the past, this continued dependence on external support recurrent expenditure is not desirable. This year 2001 external resources financed about 35% of our recurrent Budget. In the coming
year the figure will be 40%.

In the course of 2002, to fill the gap between domestic revenues and expenditures, we expect external disbursements to increase from 84
million US Dollars this year to 107 million US$ or about 48 billion
francs. These will be from Debt Relief, EU, UK, AfDB and the
World Bank. I am also pleased to announce to the House that two
more countries have agreed to provide budgetary support to Rwanda;
these are Sweden beginning this year to the tune of 11 million Kroners
and the Netherlands beginning next year. I would like on your behalf
to express Governments appreciation to these two countries for their solidarity with our country.

This proposed budget would raise the overall deficit from 9.8% to just
above 12% of GDP.

The increase in the Budget estimates for 2002 is a response to a packed agenda of policies; many of which cannot be postponed:
Implementation of the different components of the Poverty Reducing Programs; Decentralization and the need to allocate resources to the
Districts, resources which will finance development programs in the villages.
I refer in particular to the Common Development Fund; Demobilization and reintegration a result of the Lusaka Peace Process; Gacaca implementation;
Formulation of a new Constitution and strengthening Good Governance Institutions; Conducting a general population census in August 2002.

Providing adequately for counterpart funding necessaryto increase our absorptive capacity.
Payment of arrears on goods and services as audited bythe Auditor general

This year Rwanda will export US$ 94 million and importUS$ 243 million.

Gacaca, the budget of which will increase from Rwf 1.8billion to Rwf 2.3 billion in 2002

The total capital budget for 2002 amounts to Rwf 96.9billion and is funded
by Rwanda by 12%. It comprises a total of 166 projects, 83 of these are
new projects committed for implementation in 2002.
In line with the agreement with these multilateral institutions, the proceeds of the debt relief amount to US$ 14.8 million in Poverty Reduction Program are
to be used to fight poverty.

On security

One element which has always been a subject of difficult negotiations between us, donors and financial institutions, is the level of our security expenditures.
I repeat what I said last year on the issue of Defence and Security. It is often said that Rwanda is spending more than it can afford on Defence.
The reality is that Rwanda spends not enough on its security in relation to challenges it face. Unless Rwandans and residents of Rwanda can feel secure
economic development and other social programmes are not possible. Investment will not take place. Defence expenditures have constantly declined since 1997, at 3% of GDP* it is lower than any time in the last 10 years. Despite these challenges we have maintained in this budget defence expenditure at same level as last year. We are however providing resources for further recruitment into the National Police Force to enable this young force to increase its capability to deter crime."

Extracts from
REPUBLIC OF RWANDA
Ministry of Finance & Economic Planning

BUDGET STATEMENT 2002

STATEMENT DELIVERED BY THE HON. DONALD KABERUKA,
MINISTER OF FINANCE AND ECONOMIC PLANNING TO THE
PARLIAMENT

26th November 2001

www.minecofin.gov.rw
* We calculated that the apparently small 3% of GDP allocated to our military is approximately 25% of the recurrent budget.