The Minister of Finance and Economic Planning, Uzziel Ndagijimana on Wednesday, February tabled before a joint session of parliament the revised budget for the financial year 2022-2023.

The revised budget, which is due to run to the end of the financial year in June, saw government spending increase by Rwf106.4 billion, representing a 2.3% increase to Rwf4,764.8 billion from the Rwf4,658.4 billion announced in the original budget presented in June 2022.

"This revised budget will support continued economic recovery, supplement job creation efforts and continue to facilitate businesses to recover from Covid-19 impact,” reads a statement from the finance ministry.

Additional investments in education, healthcare, ICT, and agriculture will be at the forefront of the ongoing government effort to invest in Rwanda’s future, through the National Strategy for Transformation (NST1), says the ministry.

Strong recovery signs

"Despite persistent challenges stemming from Covid-19 effects, global supply chain issues, inflationary environment and impact of climate shocks, our economy continues to show strong signs of recovery,” Ndagijimana said.

According to him, over the first three quarters of 2022, the economy registered an 8.5% growth, with signs of beating projections.

"This budget revision reflects these successes, and the effectiveness of the economic recovery plan in keeping businesses afloat, encouraging new investments, creating jobs, and maintaining strong social protection for vulnerable citizens.”

Major adjustments in the budget include an increase of domestic revenues by Rwf115.2 billion from Rwf2,372.4 billion in the original budget to Rwf2,487.6 billion – a 4.7% rise.

Domestic financing increased by Rwf39.4 billion from Rwf282.6 billion in the original budget to Frw 322 billion.

A stronger recovery has increased government revenues, including Frw113.2 billion increase in tax revenue from Frw 2,067.7 billion in the original budget to Frw 2,180.9 billion representing 5.1% increase. Furthermore, non-tax revenue is expected to increase by Frw 2 billion from Frw 304.6 billion to Frw 306.7 billion, thanks to the continued recovery through increased internally generated revenue streams.