KIGALI, June 8 (Xinhua) -- The Rwandan government will prioritize massive infrastructure development and promotion of locally made products in the next financial year, according to the 2017/2018 budget.
The country's minister of finance and economic planning, Claver Gatete on Thursday presented the government budget for the 2017/2018 fiscal year at the parliament, amounting to 2.5 billion U.S. dollars.
"Economic plans enshrined in 2017/2018 budget will focus more on promoting investments in infrastructure growth and promotion of locally made products. Increased investments in infrastructure and made in Rwanda products will accelerate our country's goal to reach middle income status," he said.
Gatete said the government will focus on construction of the Bugesera International Airport, upgrading Kamembe Airport, improving and sustaining quality of road network through construction, rehabilitation and maintenance of road networks across the country.
The 2017/2018 budget shows a rise from 2.3 billion dollars in 2016/2017 to 2.5 billion dollars.
According to the Budget for fiscal year 2017/2018, Rwanda plans to pull its domestic revenue to 66 percent to the whole budget plus 17 percent of loans, making the total of 83 percent of national budget. The remaining 17 percent will come from foreign aid.
The minister said the expenditure policies in the new fiscal year are enshrined in the second Economic Development and Poverty Reduction Strategy (EDPRS II) and Vision 2020.
EDPRS II main objective is to put Rwanda on a higher growth trajectory, targeting to increase GDP per capita income to over 1,200 dollars by 2018 from the current 644 dollars, as well as achieving a middle-income status by 2020.
Diversifying exports, value addition and promotion of Made in Rwanda in partnership with the private sector will reach 25 percent growth in the new financial year, according to the ministry of finance and economic planning.
The new budget will fast track the installation of key transmission lines across the country to increase electricity access to rural areas.
Rwanda's economy is projected to grow by 6.2 percent in 2017 and 6.8 percent in 2018, from 5.9 percent in 2016 supported by improvement in the agriculture sector with a growth rate at 4.6 percent in 2017 and 4.6 percent in 2018.
The small central African country targets to double the current average annual GDP from the current 5.4 percent growth rate to more than 10 percent to be able to reach upper middle income status by 2035.