1. National Budget Unit Ministry of Finance and Economic Planning Rwanda
The Rwandan Budget
National Budget Unit
Ministry of Finance and Economic Planning
Rwanda

2. Overview Legal Framework Constitution Organic Budget Law
Financial Regulations
Annual Budgeting Cycle
Preparation & Execution
Accounting & Audit
Districts
Institutions, Roles and Responsibilities
National Budget Unit
Departments of MINECOFIN
Line Ministries
Cabinet/Parliament

3. The Legal Framework
There are 3 main legislative documents which direct the annual budget cycle
Constitution of the Republic of Rwanda
Organic Law on State Finances and Property
Financial Regulations (ministerial order)

4. THE LEGAL FRAMEWORK CONSTITUTION OF THE REPUBLIC OF RWANDA
Adopted in 2003
Establishes a bi-cameral legislature
Provides for key annual activities of the legislature
Submission of draft Finance Law to Cabinet
Adoption of Finance Law by Parliament
Submission of budget execution report to Parliament.
ORGANIC LAW ON STATE FINANCES AND PROPERTY (OBL)
Adopted in 2006
Establishes the principles of planning, budgeting and monitoring of state resources and management of state budget.
FINANCIAL REGULATIONS
Published in 2007
The Financial Regulations gives further ministerial instructions regarding the budget calendar, expenditure categorization, reallocations and accounting standards.

5. The Annual Budget Cycle
The National Budget Cycle can be broken down as follows:
Preparation
National Priorities
National MTEF
Agency Budget and MTEF
Finance Law
Other aspects
Budget Execution & SmartGov
Auditing & Accounting
District Budget Cycle
Ongoing Budget Reforms

6. Step 1: National Priorities
Months 3-4 of the fiscal year constitute the review period where the previous year’s performance is assessed and national priorities are set for the coming year
Level
Activity
National (MINECOFIN)
Macroeconomic Review & medium term projections
EDPRS annual progress report
Sectors
Joint Sector Review
Report on Annual Action Plan & Budget Execution
Districts
Report on imihigo
Joint District Review
Development Partners
Joint Budget Support and PFM review
Proceeding this, DPs make tentative commitments for the following year
Cabinet/Parliament
Akagera Retreat where national priorities for the coming year are decided.

7. Macro Framework Projections
Step 2: National MTEF
In month 5 of the fiscal year, the National Medium Term Expenditure Framework is established by National Budget Unit of MINECOFIN.
The Macroeconomic Framework for the medium term is determined by the Macro Unit of MINECOFIN.
This incorporates the tentative donor commitments for budget support and project aid.
The National Priorities are used to produce initial sector ceilings which are consistent with the Macroeconomic Framework.
National Priorities
Macro Framework Projections
National MTEF

8. Step 2: National MTEF
The Budget Call Circular is prepared by National Budget Unit (NBU) which includes
Initial budget ceilings per agency
Formats to be submitted by each budget agency to assist preparation of the Finance Law
Externally and internally financed projects
Internally generated revenues
Earmarked transfers to districts
Agency MTEFs
Strategic Issues Papers (SIPs)
Budget calendar
Change in fiscal year to that of EAC member states

9. Step 3: Agency Budget and MTEF
In month 7, SIPs and Agency MTEFs are prepared by line ministries after consultation with their affiliated agencies, projects and districts.
At this stage, information is gathered regarding projects support and sector budget support.
The SIPs and agency MTEFs are submitted to MINECOFIN and analyzed by NBU.
Budget consultations are then held between line ministries and MINECOFIN to agree on final ceilings to submit to Cabinet & Parliament.

10. Step 4: Finance Law
In months 8-9, detailed draft budget is prepared by MINECOFIN along with accompanying Budget Framework Paper
The BFP sets out the macroeconomic context of the draft budget as well as the key policy choices underlying the proposed resource allocation.
The BFP is discussed by Cabinet and recommendations are incorporated.
The BFP and draft Budget is discussed with donors at the second Joint Budget Support Review.
It is at this point that Development Partners make firm commitments for the coming year.
The draft Finance Law is submitted to Cabinet for approval before discussion by the Chamber of Deputies in months
The Finance Law is ordinarily voted and approved by Parliament by 15th of month 12 of the fiscal year.

11. BUDGET EXECUTION AND SMARTGOV
The budget is executed on the basis of the Finance Law, the Action Plan’s of budget agencies and cash flow plans
Cash Flow plans permit spending on a quarterly basis.
SmartGov is the single Integrated Financial Management Information System used throughout government for budget execution.
During budget preparation, budget data is entered into SmartGov
During execution, spending commitments are recorded in SmartGov to track execution.
A separate accounting module is currently used but a fully integrated system is to be put in place in the coming months.

12. Auditing & Accounting
The Accountant General produces, on a monthly basis, statements of revenue & expenditure, financial position, budget execution and bank reconciliation statement.
OBL provides for consolidated Public Accounts to be produced by the 3rd month of the new fiscal year.
The Auditor General has then to submit its report to Chamber of Deputies by the 6th month of the new financial year.
In reality, the current focus is on financial performance but there is a need to improve on monthly and annual reporting on physical performance.

13. District Budget Cycle
Intergovernmental Fiscal Relations Unit (IGFR) in MINECOFIN acts as the coordinating unit between the district and national budget cycle.
Districts carry out their own review of last year’s performance which is discussed at the Joint Action Forum in month 2.
During budget preparation, districts participate in consultations with line ministries on Earmarked Transfers.
MINECOFIN (IGFR) send out the District Budget Call Circular for Districts to prepare their budgets.
Following the finalization of the BFP at the national level, districts can prepare their detailed budget based on final resource envelopes in discussion with the districts’ Joint Action Forum.
District budget is approved by District Councils

14. Ongoing Budget Reforms
Improving the quality of budget execution reports (including externally financed projects)
Gender Budgeting
Improving the quality of the MTEF through improving the planning & budgeting process
Aligning the fiscal year to those of EAC member states
Developing a roadmap for moving towards GFS compliant classification for budgeting and accounting.

15. Institutions, Roles and Responsibilities
Departments of MINECOFIN
Line Ministries
Cabinet & Parliament

16. Responsibilities of the National Budget Unit
Budget Preparation
Prepare national MTEF and Budget Call Circular
Train budget agencies in Budget preparation
Analyze Strategic Issues Papers and agency MTEFs
Organise budget consultations
Participate in drafting the Budget Framework Paper
Prepare the draft Finance Law for Cabinet and Parliament
Budget Execution
Support budget agencies during budget execution
Prepare monthly, quarterly, biannual and annual budget execution reports
Participate in Joint Budget Support Reviews

17. MINECOFIN Unit Responsibilities in the Budget Cycle Macroeconomic
Produce the macroeconomic framework
Produce quarterly & annual macroeconomic report
Update macroeconomic framework during the year
Development Planning
Support sectors with their Joint Sector Reviews
Support district in producing District Development Plans & annual reviews
Produce the EDPRS annual report
Intergovernmental Fiscal Transfers
Support districts in budget preparation
Support to line ministries with transfers to districts
Consolidation of district budgets and budget execution
Treasury
Monitor cash plans
Verify & transmit payment order to BNR after verification
Monitors debt and interest payments
Public Accounts
Production of financial statements including reporting on the execution of the budget
External Finance
Managing the DAD (development assistance database)
Coordinating Joint Budget Support Reviews
CEPEX
Produce quarterly reports on project implementation
Budgetmaster project manager
Long term improvements to IFMIS system
Routine support to users of Budgetmaster (SmartGov)

18. Line Ministries
The Chief Budget Manager of each budget agency has the following reponsbilities:
Preparing the consolidated annual budget and agency MTEF for the ministry and all affiliated budget agencies and projects
Monitor the execution of the budget agency
Maintain books of accounts and other records
Prepare all budget execution reports
Prepare, maintain and coordinate the use of financial plans, and managing revenues and expenditure
Manage effectively & transparently the resources allocated to the agency

19. Cabinet & Parliament Cabinet Parliament
Approves the Budget Framework Paper and suggest changes
Approves the draft Finance Law before submission to the Parliament
Parliament
Debates the draft Finance Law in the final 3 months of the fiscal year
Also discusses the report on implementation of last year’s budget from the Office of the Auditor General
Votes and approve the Finance Law, ordinarly before the fiscal year begins.

20. Thankyou for your attention.