* Funds to be used as cash transfer, pay for public works employment
* Social programme benefits over half a million people
KIGALI, March 15 (Reuters) - The World Bank has given Rwanda a $50 million grant to boost social welfare programmes targeted at the country's poorest citizens through unconditional cash transfers and public works employment.
The bank said in a statement late on Thursday the money will go to Rwanda's World Bank support to Rwanda's Vision 2020 Umurenge Program (VUP) which supports over half a million people.
"We are happy to continue supporting Rwanda's efforts to manage its social safety net programs more efficiently, so that poor people can withstand economic and climatic shocks better and benefit more from economic growth," Carolyn Turk, World Bank country manager for Rwanda, said in the statement.
Rwanda relies on donors for about 40 percent of its budget. A number of donors, including the European Union, the United States and Britain suspended aid to Rwanda last year over allegations senior military officials had supported a rebellion in neighbouring Democratic Republic of Congo.
Rwanda has strongly denied any involvement with Congo's M23 rebel group, whose clashes with the Congolese army forced hundreds of thousands to flee their homes.
Last month Germany announced it would unblock 7 million euros in frozen aid to Rwanda. Britain followed suit earlier this month, announcing it was unfreezing £16 million of aid.
Both countries said the money would no longer be given as general budget support. While in February the World Bank approved $60 million for an electrification programme for Rwanda's rural areas.
Rwanda's poverty levels have declined to 45 percent in 2001 from 57 percent in 2006 to 45 percent in 2011. Rwanda's government has partly attributed the success to its social security programmes and the VUP system.
Last month Rwanda revised upwards its national budget to 1549.9 billion Rwandan francs ($2.4 billion), a 20 percent increase from the previous amount presented in June. ($1=630.012 Rwf)
(Reporting by Jenny Clover; Editing by George Obulutsa and Patrick Graham)
Our Standards: The Thomson Reuters Trust Principles.
