Government has unveiled ambitious plans for fiscal year 2024/25, proposing a substantial increase in the national budget to fuel economic expansion and accelerate progress towards key development objectives.
Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, presented the Budget Framework Paper (BFP) and medium-term budget estimates for the upcoming years to both chambers of parliament on On May 6, 2024.
The proposed budget reflects Rwanda’s commitment to maintaining sustainable economic growth while pursuing the goals outlined in the National Strategy for Transformation (NST).
Despite facing challenges posed by global climate change, inflation, and geopolitical tensions, Rwanda’s economy has remained resilient. In the past year, the nation experienced robust growth of 8.2%, surpassing earlier projections by 2% points.
This remarkable performance was supported by strong contributions from the services and industry sectors, as well as a notable recovery in food crop production.
To sustain this positive momentum and address emerging economic challenges, government aims to boost its budget for the fiscal year 2024/25.
The proposed total resources estimated for the period amount to Rwf5,690.1 billion, representing a significant increase from the previous fiscal year.
This uptick in budgetary allocation underscores the government’s determination to prioritize key sectors and invest in critical infrastructure and social programs.
The proposed budget comprises domestic revenues totaling Rwf3,414.4 billion, including Rwf2,970.4 billion from tax revenue and Rwf444.0 billion from other sources.
External grants are estimated at Frw 725.3 billion, while external loans are expected to amount to Rwf1,318.1 billion.
On the expenditure front, the 2024/25 budget is projected to be Rwf5,690.1 billion, with recurrent spending accounting for Rwf3,421.2 billion.
Capital spending, including foreign and domestically financed projects, is estimated at Rwf 2,037.4 billion. Additionally, funds for government policy lending and equity investment shares are projected at Rwf 60.7 billion and Rwf 39.8 billion, respectively.
The proposed budget increase is essential for several reasons.
Firstly, it allows Rwanda to maintain macroeconomic stability while pursuing high inclusive growth. By allocating resources to key sectors such as agriculture, healthcare, education, and social protection, the government aims to create a conducive environment for economic expansion and poverty reduction.
Additionally, the budgetary boost will enable Rwanda to address pressing challenges, including healthcare strengthening, agricultural productivity enhancement, and job creation.
“Rwanda’s growth momentum remains strong, despite challenging environment caused by climate change effects, global inflation, geopolitical tensions among other challenges. Our economic recovery has been strong despite setbacks. 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,”Minister Ndagijimana said.
As Rwanda charts its course for sustainable development and prosperity, the proposed budget for 2024/25 reflects a strategic commitment to prudent fiscal management and targeted investments.
With a focus on driving socio-economic progress and improving the well-being of its citizens, Rwanda remains steadfast in its pursuit of a prosperous future for all.
