TAXES COLLECTED AND ECONOMIC DEVELOPMENT IN RWANDA CASE OF RWANDA REVENUE AUTHORITY (RRA) Period 2019-2022

Abstract

The study regarding the taxes collected and economic development in Rwanda, Case of Rwanda Revenue Authority (RRA) for the period 2019-2022. The research purpose has been achieved through different objectives, which are to evaluate the efficiency and effectiveness of the tax collection and administration system in Rwanda and to examine the allocation and utilization of tax revenues by the Rwandan government, determining how these funds are allocated to support economic development projects, social welfare programs and infrastructure improvements. Secondary data collected from Rwanda Revenue Authority shows that tax collection and administration is efficient and effective in Rwanda. According to the second specific answers, In FY 2019-2020, total covid-19 related expenditures amounts was 109.1 billion and classified in six broad categories: Health related spending represented in total Rwf 25.8 billion, Social Protection and Agriculture related expenditure totalize Rwf 59.3 billion, Education totalize Rwf 745 million, Private sector/Trade facilitation totalize Rwf 10.8 billion, Infrastructure totalize Rwf 500 million for water supply and sanitation facilities and Support to State-owned enterprises totalize Rwf 12 billion as additional support to Rwandair. In FY 2020-2021 total covid-19 related expenditures amounts was 366.4 billion and classified broad categories: Health related spending represented in total Rwf 50 billion, Social Protection and Agriculture related expenditure totalize Rwf 119.4 billion, Private sector/Trade facilitation totalize Rwf 102.4 billion, Education totalize Rwf 94.6 billion to support different measures to reduce overcrowding enable social distancing, and improve hygiene. In FY 2021-2022, total tax collection amounted to Rwf 1887.2 billion. Total revenue collection for fiscal year 2019-2020 was 1516.3 billion, for fiscal year 2020-2021 was 1635.8 billion and for fiscal year 2021-2022 was 1910.2 billion. The trend curve shows that there is positive correlation between taxes collected and economic development in Rwanda.