CITIZEN’S GUIDE 2014-2015 Budget - minecofin.gov.r · MINECOFIN Citie Guide 20142015 3 FOREWORD It is my pleasure to welcome you to the Rwandan citizen guide of the national budget

THE BUDGET OF RWANDA - MINECOFIN Citizen Guide 2014-2015 1

REPUBLIC OF RWANDA

Ministry of Finance and Economic Planning

Kigali, Rwanda

www.minecofin.gov.rw

MINECOFIN

CITIZEN’S GUIDE 2014-2015 Budget

THE BUDGET OF RWANDA - MINECOFIN Citizen Guide 2014-20152


FOREWORD

It is my pleasure to welcome you to the Rwandan citizen guide of the national budget for the fiscal year 2014/2015. Each year, the Ministry of Finance and Economic Planning provides the public with a user friendly overview of the national budget. It is our responsibility to explain to citizens how we intend to raise and spend public resources.

The national budget is an instrument through which Government policies are translated into action. Our goal in providing this budget guide is to help citizens understand how the budget is developed and managed. This makes the budget a more open, transparent and

Claver GATETE

Minister of Finance & Economic Planning

accessible document, enabling citizens to have a better understanding of the budget process and ultimately be in a better position to influence, monitor and assess the effectiveness of Government’s policies. The budget citizen guide outlines general issues regarding the national budget, the priorities for the fiscal year 2014/2015 and the role and importance of citizens in the budget process.

This year’s budget theme “Infrastructure development to accelerate export growth” reflects Rwanda’s objective to achieve a higher growth rate including the expansion of our exports to maximize foreign exchange earnings. To achieve this we must focus on the fundamental needs of our community and redouble our efforts to achieve more for Rwanda to be a better place to live.

The fiscal year 2014/15 represents the second year of EDPRS II and this budget’s spending will focus more on funding the key priority areas under the second phase of Economic Development and Poverty Reduction Strategy ‘;(EDPRS II) that is critical for Rwanda’s development and will focus on attaining real GDP growth and reaching a GDP per capita of USD 1240 by 2020.


At this point, let me thank everyone for their contribution during both planning and budgeting consultations as this has been highlighted as a tool that will help us achieve our objectives with better prioritizing of our scarce resources. There is no reason therefore as to why we can’t continue to succeed despite the fact that we shall have to continue to deal with weaker global economy, declining donor aid flows and rising cost of maintaining public services.

It is my sincere hope that this guide will enhance public awareness of the budgeting process and promote citizen participation. This will ensure that government plans and budgets are implemented accordingly to the will of its citizens; I call upon all citizens to participate in this process.

Sincerely,

Claver GATETE Minister of Finance and Economic Planning


ABBREVIATION

EDPRS: Economic Development and Poverty Reduction Strategy

Frw: Rwandan Francs

ICT: Information Communication Technology

KM: Kilometer

TVET: Technical and Vocational Education Technology

USD: United States Dollars

NEP: National Employment Program


What is the citizen’s guide to the budget?

Many countries in the world have taken up open budget initiatives as one of the method to re-enforce citizens’ interest and participation in public financial management. A citizen guide to the budget is a non-technical presentation of the Government budget which enables the public including those who are not familiar with public finance to understand Government plans. Citizens are the primary beneficiaries of the national budget and therefore need to proactively engage in the budget process.

The citizens’ budget guide summarizes the budget document and explains basic information on what services the Government plans to deliver, how it will be done, who will do it, how much they will cost, and finally, be able to check if those services were delivered accordingly.

CITIZENS’ BUDGET

2014/15

TECHNICAL JARGON

SECRECYNUMBER - HEAVY INFORMATION


What is the importance of this guide to the citizen?

The government’s money is the people’s money. The government’s revenue comes from the people through the taxes (income, property) and fees they pay. It comes from exploiting natural resources that are part of the national patrimo-ny that belongs to the people in addition to grants from foreign countries and bi and multi lateral co-operations. Even when revenue comes from loans, it is the people that will have to repay them in the end. Government is accountable to the people for this money. Making the budgets it develops publicly available is one way to be accountable to the citizens you serve.

Another way is through publishing financial reports that explain how the mon-ey has been spent. The challenge, of course, is that budget information can be complex and is produced by different parts of the government at different times. It is thus disjointed, located in different, often quite complicated, docu-ments. In many respects, these documents are written for the internal use of government, and so use technical terms that most ordinary people do not un-derstand. A Citizens Budget guide is a document that summarizes and explains basic budget information. It is a report to the people, presented in an accessible format using simple and clear language they can understand.

What is the national budget?

The national budget is a plan running over a period of 12 months, from 1st July, to 30th June. It basically entails:

• A plan for how the government spends taxpayers’ money.

• What activities are funded? How much should we spend for Agriculture, Education, health, social protection etc?

• A plan for how the government pays for its activities.

• How much revenue it does raise through different kinds of taxes: income taxes, excise taxes (taxes applied to various products, including alcohol, tobacco, transportation fuels and telephone services), non tax revenues and grants.


• A plan for government borrowing or the repayment of borrowed funds.

• If revenues are greater than spending, the government runs a surplus. If expenses are greater than revenues (as is currently the case), the government runs a deficit.

• Something that affects the nation’s economy

• Some types of spending--such as improvements in education and support for science and technology—increase productivity and raise incomes in the future. Taxes, on the other hand, reduce incomes, leaving people with less money to spend.

• Something that is affected by the nation’s economy

• When the economy is doing poorly, people are earning less and unemployment is high. In this atmosphere, revenues decrease and the deficit grows.

• An historical record.

• The budget reports on how the government has spent money in the past, and how that spending was financed.


Why does a Government prepare budget?

As there is never enough money to do all the things that the government would like to do for its citizens, the budget acts as a tool that government uses to weigh up various needs and decide how to allocate the available scarce resources according to priorities. The identified priorities reflect the goals to which Government is most committed and they will be reflected in its budget.

Please explain to us when we shall all have access to

electricity?Energy access

and Irrigation is the number one priority

for our district

We need to know the strategy taken to combat continous

droughts?

How citizens can participate in the budget process

To understand how citizens can influence decision making, they must understand the budgeting process. The specific priorities and choices reflected in the budget is a reflection of the priorities and needs identified by those who participated in the process. For citizens to be effective in their contribution to the budget, they must therefore participate in the budgeting process.


In Rwanda, the budget is passed on an annual basis to ensure that the government continues to operate. Normally, the budget process timeline is governed by a budget calendar that categorizes the whole process into four key stages of Drafting or Preparation, Legislative & Enactment, Implementation, as well as Audit and Evaluation. The following figure provides a general overview of the budget process in Rwanda.

Budget process at decentralized level

The budget process begins with the identification of the priorities by the citizens at village level. Citizens come together at the village level to discuss their medium and long term priorities to be advanced for consideration during budget formulation.

- Ministry of Finance & Economic Planning issues two sets of guidelines to spending agencies asking them to plan & prioritize their activities/ interventions for the following fiscal year in light of the projected available resource envelope

- Spending agencies prepare & submit draft budgets

- Negotiations & tentative final decisions reached by executive subject to further scrutiny & approval by cabinet & parliament

- Budget tabled to the Cabinet & later to Parliament

- Consideration by parliamentary budget committee

- Parliament accepts, amends or rejects the budget

- Funds distributed among the Government spending agencies to implement agreed activities;

- Ministry of Finance monitors spending

- Ministry of Finance receives budget reallocations requests from spending agencies if necessary;

- Requests for reallocations approved or rejected by Parliament

- Oversight audit organs (Office of Auditor’s General, Office of Accountant General, National Budget Directorate etc) assesses spending agency’s accounts and performance

- Annual Audit reports published and reviewed by parliament (Public Accounts Committee)

Stages of Annual Budget

Preparation Approval Implementation Audit & Oversight

Sept-April

Before the beginning of relevant fiscal year

Fiscal year Starts and Ends

Following end of fiscal year

May-June July-June Sept-Dec


The agreed list of priorities is discussed by the councilors at the sector and district level to determine the consolidated priorities that will form the district development plan. The district priorities outlined in the district development plans are linked to sector priorities at national level. The implementation of most government programs and projects is largely done at the district level. The district council approves priorities and then district executive together with the technical personnel follow up with the implementation.

JADF IS A STRONG PLATFORM FOR PLANNING AND BUDGETING


Where does this money come from?

Revenue determines how much is available to spend on the implementation of priority policies. The Government collects revenue primarily through taxes paid by citizens, private companies and these include corporate and personal income tax, taxes on goods and services, property tax and taxes on international trade.

THE GOVERNMENT BUDGET

2014 - 201

5

1,753,256,

377,958 FR

W

How big is the national budget?

The total budget for fiscal year 2014/15 is projected at RWF 1753.3.billion compared to the revised budget of RWF 1677.6 billion in 2013/14. There is therefore an increase of RWF 75.7 billion. This increase largely aims to achieve some key reform proposals and some key expenditure priorities for fiscal year 2014/15 that are in line with our EDPRS II ambitions. In the case of the reform proposals, they include the fast tracking of institutional reforms at EWSA, RTDA, RHA and RAB and the strengthening of export initiatives by MINICOM, RDB and MINAGRI.


The government also receives grants through bilateral cooperation with other countries aimed at development and loans or grants from multilateral institutions like the World Bank, the African Development Bank, International Fund for Agriculture Development etc. The 2014/2015 national budget sources of revenue are indicated as follows;

Revenue Sources for Fiscal years for 2014/15 in comparison to FY 2013/14 in Billion Frw

Most of the money that the government uses to fund public expenditures like services or capital investments comes from taxes. The major tax sources include the sales tax, income tax, corporate tax and property tax. The tax revenue collections are approximated to be Frw 906.8 billion in 2014/15 budget compared to Frw 782.5 billion in 2013/14 budget.

Non tax revenue in 2014/15 budget equals to Frw 79.3 billion a decrease 12 billion when compared to 2013/14 budget. Other sources of revenue are grants where total grants in 2014/15 budget are estimated to be Frw 463.0. Total domestic revenues will decrease slightly from 1091.6 billion in 2013/14 revised budget to Frw 1,085 billion in 2014/15 budget. The share of domestic financing of the total budget increases from 60.2% in the 2013/14 revised budget to 61.9% in the 2014/15 fiscal year.

External Revenue667.6bn

Tax Revenue906.8bn

Domestic Financing95.6 bn

Grants544.8bn

Loans122.8bn

Non-tax Revenue79.3bn

Not lending4.0bn

Domestic Revenue1.085.6bn


This implies that, external funding including grants reduced from 39.8% in 2013/14 budget to 38.1% in the 2014/15 budget. The increase of domestic financing and decrease in external funding of our total budget is a sign that government has remained steadfast on its commitment to become a financially self-reliant country.

Sources of 2014/15 Budget Financing

How these funds are going to be spent?

I. According to EDPRS II priority areas?

About Frw 915 billion or 52% of the total budget will be used to fund EDPRS II priority areas while foundational sectors have been allocated Frw 622.9 billion (35%). The remaining Frw 215.3 billion (13%) is earmarked for support function.There are four EDPRS II priority areas, the leading one being economic transformation. The key objective of ‘’economic transformation’’ is to ensure a sustainable rapid economic growth and facilitate the process of economic transformation by increasing the internal and external connectivity of the Rwandan economy. In 2014/15 budget, the Government has allocated over Frw 438 billion to economic transformation that will increase over the medium term. Spending in energy and roads dominate this area.


The second thematic area is rural development aimed to achieve sustainable pov-erty reduction by improving land use, agriculture pro-ductivity; enabling gradua-tion from extreme poverty as well as connecting rural communities to economic opportunity through im-proved infrastructure. Rural development is allocated Frw 250.9 billion which is an increase of 86 billion from the 2013/14 budget.

Productivity and youth em-ployment is another im-portant thematic area that will be given much atten-tion in order to transform Rwanda from an agricul-ture-based economy to an industry and services-based economy through ensuring availability of appropriate

Digging terraces has kept our soils fertile

for all this time

This road is going to make it easy for us to take our produce to

the market

practical skills and improving labour productivity. In 2014/15 budget, this pri-ority gets Frw 170.3 billion and emphasis will be the National Employment Pro-gramme (NEP). The NEP is one of the EDPRS II initiatives that will help towards achieving the target of creating 200,000 off farm jobs annually.

The NEP rationalises 19 formerly disintegrated and overlapping programmes such as kuremera, Hanga umurimo, Agaciro kanjye, YEGO (Youth Empowerment for Global Opportunities) among others into an integrated framework that is envisaged to yield substantive results.

FEEDER ROAD IS ONE OF THE PRIORTIES OF THE GOVERNMENT


The programme is composed of well streamlined pillars with distinct leads following the division of labour conducted to eliminate duplication of resources in delivery and promotion of synergy.

With Government we have been able to create

employment for 100 members of our cooperative and we are able to meet the market

demand

The fourth and the last EDPRS II priority area is accountable governance. The objective is to enhance good governance by promoting citizen participation and mobilization for better service delivery and strengthening public accountability. Over Frw 52.9 billion is allocated to this theme in 2014/15 budget.

We have made strides with our PFM

reforms however we need to continue improving transparency

and accountability to our citizens.

To build on our successes of previous years the foundational sectors such as health and basic education, macroeconomic stability, public finance management, justice, peace and stability,food security and malnutrition , decentralization and demographic issues are allocated Frw 622.9 billion in 2014/15 budget.


How big is recurrent and development budget?

Government expenditure can be divided into recurrent and development expenditures. The recurrent budget refers to government’s expenditures to support day to day operations such as paying salaries and wages, rent, materials and supplies, transport expenses, simple repairs and maintenance of equipment. Development expenditures are expenses made for acquisition of new assets and projects for the citizens. Such expenses include construction of roads, schools, hospitals, rehabilitation or construction of water installations.

In the 2014/15 budget recurrent budget is equal to Frw 854.5 billion an increase of 7% when compared to 2013/14 recurrent budget. Development budget is equal to Frw 784.1 billion in 2014/15 budget, equivalent to 4% increase when compared to 2013/14 revised budget. The following pie chart illustrates the share of recurrent and development budget categories in the 2014/15 budget.

Source: Ministry of Finance and Economic Planning

3%10%

12%

14%

25%

36%

Economic transformation

Rural Development

Productive & Youth Employment

Accountable Governance

Foundational Sector

Support function

BUDGET ALLOCATION ACCORDING TO EDPRS II THEMATIC AREAS

Source: Ministry of Finance and Economic Planning


II. Distribution of the development Budget to the EDPRS Thematic Areas

Economic Transformation

The main objective of the Economic Transformation thematic area is to propose an ambitious, prioritized and coherent cross-sectoral strategy to sustain rapid growth and facilitate Rwanda’s process of economic transformation to meet Vision 2020 revised targets. The key projects and programmes under this thematic area that have been allocated resources in the 2014/15 fiscal year are:

Energy- Construction of National Wide Transmission Line: RWF 25.7 Billion- Electricity Roll Out Program (Electricity Access Scale Up/WB & OFID):

RWF 21.9 Billion- Geothermal Resource Development: RWF 17.7 Billion- Electrification of 6 Districts in Eastern Province with STEG: RWF 12.4

Billion- Construction of 145 Mw Ruzizi Ii Hydropower Plant: RWF 10 Billion- Construction of Nyabarongo Hydro Power Stations (27 Mw): RWF 8.1

Billion- Construction of 90 Mw Rusumo Falls Hydropower Project: RWF 7.5

Billion

Transport- Expropriation of Bugesera International Airport: RWF 7.7 Billion- Roads Infrastructures Project: RWF 7.4 Billion- Cyangugu-Ntendezi-Mwityazo Road (50Km) Lot3: RWF 7.2 Billion- Huye-Kitabi Road Rehabilitation (53Km): RWF 1.8 Billion- CIMERWA - Bugarama (10 Km) Road Upgrading: RWF 1.2 Billion- Rusumo Bridge & OSBP: RWF 1.1 Billion- Rwamagana Industrial Park Access Road: RWF 1.0 Billion


Environment- Relocation of Gikondo Industrial Park: RWF 6.2 Billion- Land Tenure Regularization Support Project: RWF 2.4 Billion- Lake Kivu Monitoring and Management Project: RWF 2.2 Billion- Reducing Vulnerability to Climate Change in North West Rwanda

through Community Based Adaptation: RWF 2.0 Billion

This biogas system has saved us all the fumes

from charcoal and it takes a shorter

time to prepare meals

With this water collecting system we do not have to walk 2KM to

get water

ICT- Regional Communication Infrastructure Programme: RWF 5.4 Billion- E-Government: RWF 3.7 Billion- Regional ICT Center for Excellence: RWF 2.8 Billion- ICT Private Sector Development: RWF 8.2 Billion

E-SOKO shows that the prices of

coffee and tea have dropped

We need to start farming other

cash crops that fetch more money


I have paid off already but I want to start a saloon in the

City Centre

The harvest is very good, I will be able to pay off my shares for the subsidized

biogas digester with the revenue

Agriculture- Project ForRural Income through Exports (Price): RWF 5.3 Billion- Tea Expansion: RWF 4 Billion- Gako Beef Farm: RWF 2.5 Billion

Trade & Tourism- Construction of 4 Provincial Industrial Parks: RWF 3.8 Billion- Diversification of Tourism Products and Product Development: RWF

2.5 Billion- Manufacturing Growth Project: RWF 1.3 Billion- Detailed Exploration: Geology, Geophysical and Geochemical Samplings

in 4PTAS: RWF 1.2 Billion- Wildlife Protection and Conservation of National Parks: RWF 1.2 Billion

Did you visit the beautiful Nyungwe forest

reserve?

After visiting the mountain Gorillas, this

would be a nice Souvonir to take home


Rural DevelopmentThe objective of rural development is to improve the quality of life and economic wellbeing of people living in rural areas by reducing rural poverty, which in Rwanda remains wide spread even though it has reduced significantly over the past decade. The key projects and programmes that have been allocated resources in the 2014/15 fiscal year to finance rural development are:

Agriculture- Gishwati Land and Water Management ( GLWM ): RWF 15 Billion- Priority Crops Intensification (Including Fertilizer Imports): RWF 10 Bil-

lion- Rural Sector Support Project (Phase II): RWF 7.7 Billion- Immediate Action Irrigation Project (GFI): RWF 7.2 Billion- Kirehe Watershed Management Project: RWF 6.3 Billion- Projet d’Appui Aux Infrastructures Rurales de la Region Naturelle de

Bugesera: RWF 5.8 Billion- Priority Crops Intensification RWF 2.9 Billion- Support to Strategic Plan for Agriculture Transformation Ii (SPAT Ii):

RWF 2.4 Billion- Livestock Infrastructure Support Program (LISP): RWF 2.3 Billion

THE GOVERNMENT HAS MADE IRRIGATION A PRIORITY TO COUNTER CONTINUOUS DROUGHTS THAT AFFECT PRODUCTION.


Water and Sanitation- Lake Victoria Water Supply and Sanitation Project Phase II (LVWATSAN

Ii): RWF 8.5 Billion- National Rural Water Supply and Sanitation Programme (PNEAR): RWF

3.1 Billion- Rural Water Supply and Sanitation Ii (PRSC-PEAMER): RWF 2.2 Billion

Productivity and Youth EmploymentThe objective of this thematic area is to move Rwanda from an agriculture-based economy to an industry and services-based economy. Vision 2020 aims for half of the Rwandese workforce to be working off-farm by 2020. Reaching this goal will require creating an additional 200,000 non-farm jobs per year.

The focus for 2014/15 will be on skills development through TVET and streamlining National Employment Programme that encompasses 19 previous initiatives like Hanga Umurimo, YEGO and Kuremera now coordinated under one programme. The key projects and programs that have been allocated resources in the 2014/15 fiscal year are:

- Skills Development Project: RWF 13.8 Billion- TVET Schools Infrastructure Development and Equipment Project:

RWF 10.5 Billion- Expansion and Development of the Integrated Polytechnic Regional

Center Project-IPRC Kicukiro: RWF 7.2 Billion- One Laptop per Child Project: RWF 5.2 Billion- National Employment Programme: RWF 3 Billion- Acquisition of Hostels at College of Arts: RWF 2.4 Billion- KOICA Training of Trainers Project: RWF 2.4 Billion- Rukara Infrastructure Development Project: RWF 1.7 Billion- Rwanda Integrated Trade Logistics Project: RWF 1.5 Billion- University of Rwanda-Infrastructure Development: RWF 1.5 Billion- Support to Skills Development In Science And Technology: RWF 1.4 Billion- Implementation of Iwawa Master Plan: RWF 1.3 Billion- Hands-On Skills among Youth outside Regular Education System: RWF

1.2 Billion


Accountable GovernanceUnder accountable governance, the objective is to enhance accountable governance by promoting citizen participation and mobilization. The major focus areas for 2014/15 are improving service delivery in both public (including Districts) and private sector and ensuring more effective sectorial decentralization.

The key projects and programs that have been allocated resources in the 2014/15 fiscal year for the accountable governance thematic area are:

- National Cyber Security: RWF 3.1 Billion- Embassy Infrastructure: RWF 2.8 Billion- E-GATES: RWF 1.2 Billion

Where can citizens find the national budget?

The budget becomes a law after it is passed by parliament at central government and local council at the District level. After the approval, the budget can be found in the official government gazette or in all budget agencies. A soft copy of the complete national budget law can be accessed at the website of the Ministry of Finance and Economic Planning while the soft copies of District annual budgets can be obtained from the respective District websites and the district headquarter

TVET IS A PRIORITY FOR GOVERNMENT IN A BID TO INCREASE OFF FARM JOBS


Furthermore, the government provides the budget information through the citizens’ budget guide. The national budget citizens’ guide is disseminated to Districts and civil society organizations and published on the Ministry’s website.

How can I monitor and evaluate budget implementation?

The implementation of the adopted budget starts on July 1st of each year and ends on 30th June of the next calendar year. The responsibility for implementation of the national budget rests entirely with the management units (ministries, autonomous and semi-autonomous agencies and districts). The overall monitoring and evaluation of the government finances is carried out by the Auditor General who submits the annual report to the parliament.

www.minecofin.gov.rw


Why should Citizens participate in monitoring & evaluation of budget implementation?

Citizens and civil society have the right to monitor the implementation of the budget of government. Citizens are encouraged to monitor performance of works and services done by service providers. Citizens have the right to request information from managers of public funds to report on the level of implementation of planned and budgeted activities. Districts hold open days to provide citizens with information about government activities. These open sessions are important in monitoring implementation and evaluation of performance contracts.

What is the role of Civil Society Organizations engagement in monitoring & evaluation of budget implementation?

The civil society organizations give voice to the views and opinions of citizens, By representing the interests of citizens during the entire process of the budget preparation by identifying priority areas to be taken care of in the budget, through budget hearings in the parliament and at the district level and finally by providing information to citizens through the creation of platforms for awareness and discussions of the budget and provide feedback to government on citizens perspectives on the budget.

THE CULTURE OF RECONGNISING SUCCESS SHOULD BE MAINTAINED


CONCLUSION

The 2014/15 budget is in line with EDPRS II priorities and with the proposed expenditure allocations, we expect that progress will be made towards attaining most of the targets outlined in the EDPRS II policy document.

The Government also recognizes the role of private sector towards the achievements of EDPRS II targets and much effort will be invested in various programmes and projects aimed at harnessing the private sector potential for an accelerated growth. Thus public expenditure will be supported by contribution from a dynamic private sector.

To fully participate in the budget process, citizens have a right and responsibility to access information on national and district’s budgets. To access a copy of the national budget and district budgets, citizens are encouraged to visit www.minecofin.gov.rw or request the relevant documents from the Executive Secretary of the district.


GLOSSARY

1. Budget Agency or Spending Agency: Are entities whose activities are financed by the State Budget.

2. Budgetary Grant: it’s any form of aid that the Government is not required to pay back to the donor government or multilateral institution that is channeled through the national budget.

3. Budget support: is a particular way of giving international development aid, also known as an aid instrument or aid modality. With budget support, money is given directly to a recipient country government, usually from a donor government.

4. Budget transfers: Financial resources that the central government entities give lower local administrative entities through the National Budget to undertaken specified activities.

5. Capital Grants: A sum of money given to the government either by another government or a multinational institution to encourage acquisition of capital assets such as buildings, land, machines or to make improvements to them.

6. Direct Budget Support: One of aid modality. With direct budget support, money is given directly to a recipient government, usually from a donor government through the budget of the recipient country.

7. Domestic Financing: Using internal sources of funds to finance government expenditures and new investments rather than obtaining capital from outside of the country.

8. Domestic revenue: Revenue that is raised within the borders of a country – from taxes paid by citizens, duties on imports, profits from privatization, and various other fees.


9. Economic growth: Economic growth refers to the increase in the quantity of goods and services in a country. Economic growth can be measured by changes in Gross Domestic Product.

10. Economic Development and Poverty Reduction Strategy (EDPRS II): A five year (2013/14-2017/18) strategy set to propel Rwanda to middle income economy

11. Grant: Type of foreign aid that the Government is not required to pay back to thedonor government or multilateral institution. The contribution is usually made to support a specified program, function or project.

12. Income Taxes: These are taxes charged directly to the income of individuals and corporations.

13. Non-tax Revenue: Revenue that does not accrue from taxes. Includes fees, levies,permits, licenses, dividends etc.

14. Organic Budget Law: It’s a law that regulates the principles governing the preparation, proposal, and approval of the State Budget and responsibilities for its implementation

15. Property tax – a tax levied by state or local government on the assessed value of property.

16. Sales tax – a tax levied by a state or locality on the retail price of an item, collected by the retailer.

17. Tax Revenue: A government income generated as a result of levying taxes on goods and services.

Documents

CITIZEN’S GUIDE 2014-2015 Budget - minecofin.gov.r · MINECOFIN Citie Guide 20142015 3 FOREWORD It is my pleasure to welcome you to the Rwandan citizen guide of the national budget