Donor budget support increases by 20 percent

Finance Minister John Rwangombwa greets the Head of
Development Cooperation in the German Embassy
and other Development partners after the meeting.
(Photo/ J. Mbanda)

KIGALI - Development partners yesterday hailed government

for maintaining a steady economic growth path and

announced a 21 percent increase in their support

to the country's budget in the 2010/11 fiscal year.

Speaking on behalf of seven development partners after

signing a $335.4 budget support package

for next fiscal year, Dr. Heike Henn, Head of

Development Cooperation at the Germany Embassy

said that the commitment made was a result

of positive development Rwanda had registered.

"The year 2009 has been a year of successful

collaboration between the Government of Rwanda

and the Budget Support Development Partners.

We comment the government for the progress

we have seen throughout the year," he said.

"We have seen Macro-economic stability despite

the difficult environment.

We are seeing good progress regarding

EDPRS implementation for example in

health and education," Henn said

at the ceremony held at MINICOFIN.

She noted that the estimated growth figures

of 2009 and a strong performance of

the agriculture sector "are encouraging"

especially when the world is

facing economic hardships.

Within the new pledged support, the World Bank

contributed $91m, European Commission $80.5m,

United Kingdom $63.1m, African Development Bank

$27.6m, Germany $15.2m, Netherlands $14.4m

and Belgium $4.3m.

Most of the funding will be front-loaded

in the first two quarters of the 2010/11 Financial Year.

Rwanda will also receive additional funding

of $39.3m through Joint Financing Mechanisms,

bringing the total amount to $335.4

from development partners.

The commitment received yesterday means

that the government can now fully programme

all budget support contributions into

the National budget in due time

for the next fiscal year.

The commitment comes five weeks after

conclusion of the Joint Budget Support Review

held in November where development partners

and the government made an overall assessment

in of implementation of EDPRS programs

during the 2009/10 Fiscal year.

The partners also announced their commitment

to fund the 2011/12 and 2012/13

fiscal year budget.

"Budget support directly translates into public spending

on priority areas for economic development

and poverty reduction.

It makes up a significant share of the overall budget

and without it, the implementation of

the EDPRS would be impossible," Henn said.

Finance Minister John Rwangombwa commended

development partners and pledged

to ensure aid effectiveness and accountability.

"Budget support is an aid modality based

on deep mutual trust and depends

on development partner's confidence

in the country's systems," the Minister said.

"By their presence and the pledges made today,

our budget support partners signal that

they believe in the government overall

development plan with the ultimate aim

of reducing and eventually

eradicating poverty," Rwangombwa said.

He noted that the 21 percent increase

in the commitment is a sign of confidence

from the development partners and

Rwandans-assuring the partners that 'every penny'

received goes towards improving

the lives of all Rwandans.


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