Rwanda has proposed a budget of RWF 5,690.1 billion for the fiscal year 2024/25, marking an 11.2% increase (RWF 574.5 billion) from the revised budget for 2023/24. The announcement was made by Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana during the presentation of the Budget Framework Paper (BFP) and medium-term budget estimates for 2024/25-2026/27 to both chambers of parliament.
This budget aligns with the medium-term fiscal path, supporting the implementation of the National Strategy for Transformation (NST) goals while ensuring sustainable public debt levels.
Rwanda's economy has demonstrated resilience, achieving a robust growth rate of 8.2%, which is 2 percentage points higher than projected. This growth was driven by strong performances in the services and industry sectors, along with a recovery in food crop production in the latter half of the year.
"Rwanda's growth momentum remains strong, despite the challenging environment caused by climate change, global inflation, and geopolitical tensions. Our economic recovery has been robust despite setbacks. The government will continue to maintain macroeconomic stability and high inclusive growth by investing in key sectors such as agriculture, healthcare, social protection, and education," stated Minister Ndagijimana.
The economy is projected to grow by 6.6% in 2024, 6.5% in 2025, and 6.8% in 2026, with an expected growth rate of 7.2% by 2027.
Breakdown of the 2024/25 Budget
The total resources for the fiscal year 2024/25 are estimated at RWF 5,690.1 billion. This includes domestic revenues of RWF 3,414.4 billion, comprising RWF 2,970.4 billion from tax revenue and RWF 444.0 billion from other revenue sources. External grants are estimated at RWF 725.3 billion, and external loans at RWF 1,318.1 billion.
On the expenditure side, the budget for 2024/25 is projected to be RWF 5,690.1 billion, up from RWF 5,115.6 billion in the revised 2023/24 budget. The expenditure includes recurrent spending of RWF 3,421.2 billion. Capital spending is estimated at RWF 2,037.4 billion, covering foreign and domestically financed projects, including RWF 39.8 billion for various equity investment shares and RWF 60.7 billion for government policy lending.
Key Priorities
The key priorities for the 2024/25 national budget include:
- Strengthening the health system
- Increasing agriculture and livestock productivity
- Scaling up social protection coverage
- Improving the quality of education
- Creating employment opportunities
Other interventions will promote digital technologies to improve service delivery, strengthen disaster prevention and response, and implement environment and natural resources policies.
Budget Framework Paper (BFP)
The BFP outlines the government's economic policies over the medium term, providing the foundation for the next fiscal budget. Prepared by article 34 of the Organic Law on Public Finance Management, Outlines the government's macroeconomic and fiscal policy stance and budget policy over a three-year horizon. The 2023/24-2025/26 BFP provides the basis for preparing the 2023/24 budget, which will be presented in June.
The policies and strategies over the medium term are guided by Vision 2050, the National Strategy for Transformation (NST1), and the seven-year government program.
Author: Donald Masimbi