How Rwanda keeps wages, spending low


Rwanda has kept its wages and salaries below 18 per cent of the budget, as part of measures to cut the costs of running government institutions.

“Salaries and wages are well controlled and represent only 18 per cent of the budget,” said Uzziel Ndagijimana, Minister of Finance. “They increased slightly because of the creation of new institutions and promotion of some staff.”

He said keeping recurrent expenditure low is one of the reasons Rwanda’s debt distress is low.

Rwanda has borrowed heavily in recent years to finance infrastructure programmes, contributing to an increase in external public debt to 37.5 per cent of GDP in 2017 from 16.4 per cent in 2012.

But its debt sustainability analysis indicates low risk of debt distress, according to the International Monetary Fund. However, the country increased its budget spending by 7 per cent in the 2017/18 fiscal year to Rwf2.09 trillion ($2.58 billion).

Only 17 per cent of this budget is funded by donors, while about Rwf362.8 billion is borrowed from external lenders.

Source – Daily Nation

Share on facebook
Share on twitter
Share on linkedin