Government has proposed a budget of Rwf5,690.1 billion for the fiscal year 2024/2025. This represents an 11.2% increase from the previous budget.
Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, presented the proposed budget to Parliament on Friday afternoon.
The budget aims to sustain economic growth, enhance climate change mitigation efforts, and fund critical investments across various sectors, including agriculture, private sector development, youth employment, energy, ICT, transport, and financial development.
It also focuses on key projects in health, education, disaster management, social protection, governance, justice, and reconciliation.
“The 2024/25 budget proposal reflects Rwanda’s economic resilience in the face of external shocks. The Government remains committed to prioritizing spending, making strategic investments to achieve NST-1 objectives, and maintain economic stability,” Minister Ndagijimana told Parliamentarians.
Key Highlights of the 2024/2025 Budget
- Total Estimated Resources: The budget is projected at Rwf 5,690.1 billion. This includes domestic revenues of Rwf3,414.4 billion, with Rwf2,970.4 billion from tax revenues and Rwf444.0 billion from other revenues. External grants are estimated at Rwf725.3 billion, and external loans are projected to be Rwf1,318.1 billion. Domestic borrowing and financial assets draw-down will total Rwf232.3 billion.
- Total Expenditure: Forecasted at Rwf 5,690.1 billion, this includes recurrent expenditure of Rwf3,466.3 billion and development expenditure of Rwf1,992.3 billion. An additional Rwf231.5 billion is anticipated for equity, investment fund shares, and policy lending.
Allocation in Alignment with NST-1 Pillars
- Economic Transformation: Approximately Rwf3.393 trillion (59.6% of the budget) will be directed towards enhancing agricultural productivity, job creation, private sector development, climate change adaptation, and improving access to essential services such as electricity, clean water, and ICT.
- Social Transformation: Around Rwf1.51 trillion (26.6% of the budget) will focus on improving healthcare, education quality and access, poverty eradication through social protection programs, nutrition enhancement, gender equality, sports and culture support, and disaster management.
- Transformational Governance: An allocation of Rwf784.7 billion (13.8% of the budget) will target quality service delivery, good governance, public finance management, justice system strengthening, peace and security, crime prevention, and the reinforcement of economic diplomacy.
Economic Resilience
Minister Ndagijimana told Parliamentarians that the government remains vigilant and prepared to take necessary measures to safeguard the economy against external factors, such as climate change and global economic shocks, that could impact Rwanda’s economy.