Rwanda’s proposed budget for the fiscal year 2024-2025 amounts to Frw 5,690.1 billion, an 11.2% increase (Frw 574.5 billion) from the revised budget for the fiscal year 2023-2024.
This was announced by Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana on 6th May 2024 as he presented the Budget Framework Paper (BFP) and medium-term budget estimates for 2024/25-2026/27 to both chambers of parliament.
Minister Ndagijimana revealed that the budget for the fiscal year 2024/25 will reflect the medium-term fiscal path allowing for the implementation of the National Strategy for Transformation (NST) goals while maintaining public debt at sustainable levels.
Rwanda’s economy remains strong despite a challenging global context. It maintained robust growth increasing by 8.2%, 2 points higher than projected, supported by strong performance in services and industry, as well as a recovery in food crop production in the second half of the year.
“Rwanda’s growth momentum remains strong, despite the challenging environment caused by climate change effects, global inflation, geopolitical tensions, among other challenges. Our economic recovery has been strong despite setbacks,” Minister Ndagijimana said.
He added that the Government will continue to maintain macroeconomic stability and high inclusive growth by investing in key sectors such as agriculture, healthcare, social protection, education, among others.
Rwanda’s economy is projected to grow by 6.6%, 6.5%, 6.8% in 2024, 2025, and 2026 respectively, before reaching 7.2% in 2027.
Proposed 2024-25 Budget
The proposed total resources estimated for the fiscal year 2024/25 amount to Frw 5,690.1 billion.
This amount is made up of domestic revenues amounting to Frw 3,414.4 billion comprising Frw 2,970.4 billion from tax revenue and Frw 444.0 billion from other revenue collections.
External grants are estimated at Frw 725.3 billion while external loans are estimated to be Frw 1,318.1 billion.
On the expenditure front, the 2024/25 budget is projected to be Frw 5,690.1 billion, with this figure being Frw 574.5 billion higher than the revised budget for the fiscal year 2023/24 of Frw 5,115.6 billion.
The 2024/25 figure is made up of recurrent spending of Frw 3,421.2 billion. On the capital spending side, the estimated amount is Frw 2,037.4 billion for both foreign and domestically financed projects, which also includes spending under various equity investment shares projected at FRW 39.8 billion and funds for government policy lending estimated at Frw 60.7 billion.
Key priorities for the 2024/25 national budget will include strengthening the health system, increasing agriculture and livestock productivity, scaling up social protection coverage, improving the quality of education, and creating employment opportunities.
Other interventions will include the promotion of digital technologies to improve service delivery, strengthening disaster prevention and response, implementing environment and natural resources policies, among others.
BFP is a document outlining Government economic policies over the medium term that helps lay the foundations of the next fiscal budget.
It is prepared in accordance with Article 34 of the Organic Law on public finance management and outlines the Government’s macroeconomic and fiscal policy stance as well as the budget policy over a 3-year horizon.
The 2023/24-2025/26 BFP provides a basis for the preparation of the 2023/24 budget, which will be read in June this year.
Policies and strategies over the medium term are guided by Vision 2050, National Strategy for Transformation (NST1), as well as the seven-year government program.
Government spending in 2024-2025 set to increase by 11.2%
