Last week, lawmakers approved a government proposal to increase the national budget by nearly 12 per cent as way of stabilising the national economy within the next three months before the close of the 2012-2013 fiscal year.
The government wants the budget revised from the initial Rwf1,385.3bn to Rwf1,549.9bn.
The government's projection to raise additional resources worth Rwf 227 billion, from a sovereign bond issued to European markets under the new revised budget, is one of the best problem-solving actions.
The strategy ought to be commended as it will be invested in major government projects and mitigate the gap left by aid suspension.
The Finance Minister has proposed to make cuts on the initial budget proposal targeting the areas that will not significantly affect service delivery like recruitment of new teachers, which could be delayed this year.
We really need to prepare ourselves for budget cuts that arise owing to unforeseen circumstances.
This requires us to fully explore more channels to ensure that major development programmes remain on course with or without the traditional public system framework.
For instance, we should avoid the perception that the long term solution to the country's needs lies with public funding alone.
Analysts believe it is possible to bring members of the private sector on board and systematically decrease a huge burden on the government on certain major projects.
Critical challenges are in energy development.
We should therefore quickly explore ways of mobilising available funds away from the normal avenue; government budget.
This can be through public-private partnership say in power provision. If properly implemented, the public-private partnership can go a long way in creating more resources and enabling government to allocate funds to other worthy causes.
The central government should be in position to widen the resource base but formal public-private partnerships would help liberate the government from all major undertakings that overburden it.
via The New Times
