Government expenditure in the financial year 2023/2024 will be increased by Rwf85.6 billion, or 1.7 per cent, to Rwf5,115.6 billion, up from the 5,030 billion approved by Parliament in June 2023, according to the Ministry of Finance and Economic Planning (MINECOFIN). While presenting the 2023/2024 national budget revision proposals to Parliament, on Thursday, February 8, the Minister of Finance, Uzziel Ndagijimana, said that the adjustment was based on the budget execution during the first half of the fiscal year, which stood at 61 per cent at end of January 2024 and the financial needs until end of June. ALSO READ: Eight key projects to be funded under Rwanda’s Rwf5tn budget Proposed changes in expenditure Ndagijimana indicated that the proposed additional funding was distributed based on financing needs to ensure effective execution of the financial plan. Recurrent spending is anticipated to increase by Rwf12.2 billion, from the Rwf2,901.4 billion allocated in the initial budget, to Rwf2,913.6 billion, Ndagijimana pointed out. “Overall, this increase will support different initiatives including addressing a gap in public servants’ salary, funding activities related to the elections of the President of the Republic and Members of Parliament, addressing a gap in monthly living allowances meant for the economically vulnerable demobilised combatants, as well as filling a gap in the finance allocated to [Rwanda’s] embassies especially because of the new ones,” he said, referring to recurrent expenditure. Capital spending – funding meant for implementation of development projects – will be allocated an extra Rwf83.7 billion, increasing it from Rwf1,894.7 billion as set in the initial budget envelope to Rwf1,978.3 billion, Ndagijimana told lawmakers. As explained, this too is as a result of new funding and various adjudgments made to funding allocations to different projects that receive allotments from national budget. The increment was channelled to various activities including agriculture; especially to subsidise chemical fertilisers, and infrastructure, to pay compensations for properties damaged by infrastructure projects, Ndagijimana said. ALSO READ: Nine products exempted from taxes in new budget Economy displays strong signs of recovery Meanwhile, the minister said that despite persistent challenges stemming from the effects of the Covid-19 pandemic, global supply chain disruptions, an inflationary environment, and the impact of climate shocks, the economy continues to display strong signs of recovery. “With a 7.6 per cent growth over the first three quarters of 2023, surpassing projections, this budget revision reflects our successes and the effectiveness of the economic recovery plan in sustaining businesses, attracting new investments, generating employment, and ensuring robust social protection for vulnerable citizens,” he observed.
