The government plans to spend an estimated Rwf5,690.1 billion in the fiscal year 2024/2025, a 11.2 percent increase compared to the Rwf5,115.6 billion approved for the current financial year, the Minister of Finance and Economic Planning, Uzziel Ndagijimana, told Parliament on Monday, May 6. The proposed new budget is Rwf574.5 billion higher than the revised budget for fiscal year 2023/24. The minister disclosed the fiscal estimates for the upcoming fiscal year – which begins on July 1 – while presenting to Parliament a budget framework paper, outlining government economic policies over the medium term, which helps to lay the foundation of the next fiscal year's budget. Planned activities in the next financial year, he said, were selected based on their potential to help the country reach development goals as contained in the National Strategy for Transformation and dealing with the effects of climate change on the economy, as well as other external shocks. Key priorities for the 2024/25 national budget will include strengthening the health system; increasing agriculture and livestock productivity; scaling up social protection coverage; improving the quality of education and creating employment opportunities. Other planned interventions include promotion of digital technologies to improve service delivery, strengthening disaster prevention and response, implementing environment and natural resources policies, among others. “As the government continues implementing the National Strategy for Transformation (NST1) which we are concluding this year, it will also continue executing an economic management policy that reduces fiscal deficit, and managing national debt level, at the same time keep dealing with the effects of wars and conflicts globally, and climate change which are a hindrance to the global economy,” he observed. Ndagijimana indicated that domestic resources are projected to be more than Rwf3.4 trillion, equivalent to 60 per cent of the proposed budget for 2024/2025 “which is a good step in line with budget self-sufficiency.” The remaining part of expenditure will be met through external financing, he said, with grants forecast to reach more than Rwf725 billion, or 12.7 per cent of the total budget, while loans will amount to over Rwf1.3 trillion, equivalent to 23.2 per cent. “Overall, domestic finance plus external loans that the country will pay back, account for 83.2 per cent of the next year 2024/2025,” Ndagijimana said. He observed that the budget will focus on economic recovery from the lingering effects of the Covid-19 pandemic, the impact of wars and conflicts in different parts of the world and dealing with adverse effects of climate change on the economy. On the expenditure consideration, recurrent spending will take more than Rwf3.4 trillion, equivalent to 60 per cent of the proposed total spending, while development budget and government investments will amount to over Rwf2.2 trillion, or 40 per cent. He said that resources were distributed [among public entities including projects] based on targets under three pillars of the National Strategy for Transformation – economic transformation, social transformation, and transformational governance. In 2023, he said, Rwanda’s economy grew by 8.2 per cent, which is higher than the earlier projected 6.2 per cent mainly thanks to good output of the industry and services sectors; and 3.2 per cent growth for the global average. “Our economy is forecast to grow by 6.6 per cent in 2024 and 6.5 per cent in 2025. We also project that it will maintain an increasing trend to 6.8 per cent in 2026, and 7.2 per cent in 2027, especially following global political and economic issues,” he said of the country’s economic outlook. MP Christine Muhongayire said: “I commend the government of Rwanda for all the effort it invests for the budget to keep increasing so that we get what we need as Rwanda, while there are many major issues in the world, including wars and conflicts, as well as climate change. However, she expressed concern about Rwanda’s trade deficit – where export earnings are outweighed by the import bill – and inquired if government has any clear strategies to address the problem. Ndagijimana replied that for international trade, there is a huge gap which was widening. But, he said, the country’s exports were increasing, albeit from a low baseline. “As our imports are almost double [our exports], their small increase results in a significant difference. But we have strategies to utilise the opportunities we have, especially in agriculture. There are crops from Rwanda that are sought after in the world, for which we have markets either in Europe or Asia, but you realise that we export them in small quantities, he said. Meanwhile, he pointed out that there are measures through which the country can increase the agricultural exports, citing the Gabiro Agribusiness Hub Project which has attracted some investors. Other ongoing plans include adding value to the country’s minerals for higher revenues, and increasing industrial output through partnership with the private sector.
