In a strategic move aimed at accelerating investments to realize the objectives of the National Strategy for Transformation (NST-1), the Government has unveiled a proposal for a budget of Rwf5,690.1 billion for the upcoming fiscal year 2024/2025, an increase of 11.2% from the previous budget.
The announcement was made by Uzziel Ndagijimana, the Minister of Finance and Economic Planning, on May 25, as he presented the proposed 2024/25 national budget to Parliament.
The budget is intended to sustain economic growth, bolster climate change mitigation efforts, and fund crucial investments in agriculture, private sector development, youth employment, energy, ICT, transport, and financial development. It will also speed up the implementation of key projects in priority sectors such as health, education, disaster management, social protection, governance, justice, and reconciliation.
Addressing Parliamentarians, Ndagijimana said "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 NST1 objectives, and maintain economic stability."
Key highlights of the 2024/2025 budget
Total estimated resources for the fiscal year 2024/25 are projected at Rwf5,690.1 billion. This comprises domestic revenues of Rwf3,414.4 billion, with Rwf2,970.4 billion expected from tax revenues and Rwf444.0 billion from other revenues.
External grants are estimated at Rwf725.3 billion, while external loans are projected to amount to Rwf1,318.1 billion. Domestic borrowing and financial assets drawdown will total Rwf232.3 billion.
Total expenditure for the fiscal year 2024/25 includes recurrent expenditure of Rwf3,466.3 billion and development expenditure of Rwf1,992.3 billion. The Government also anticipates an additional Rwf231.5 billion for equity, investment fund shares, and policy lending.
Economic transformation
Approximately Rwf3.393 trillion (59.6% of the budget) will be allocated to economic transformation.
Resources will be directed towards enhancing agriculture productivity, job creation, private sector development, climate change adaptation, and mitigation efforts, as well as improving access to essential services such as electricity, clean water, and ICT adoption.
Social transformation
Around Rwf1.51 trillion (26.6% of the budget) will be allocated to social transformation initiatives. This funding will focus on improving healthcare and the quality of, and access to education, poverty eradication through social protection programs, nutrition enhancement, gender equality promotion, support for sports and culture, and disaster management enhancement.
Transformational governance
An allocation of Rwf784.7 billion (13.8% of the total budget) is earmarked for transformational governance. This funding will target quality service delivery, good governance, public finance management, justice system strengthening, peace and security maintenance, crime prevention, and the reinforcement of economic diplomacy.
The government remains vigilant and prepared to take necessary measures to safeguard the economy against external factors that could impact Rwanda's economy such as climate change and global economic shocks.