The Government of Rwanda and its development partners have endorsed a new public financial management (PFM) strategic plan that will run from 2024 to 2029, according to the Ministry of Finance and Economic Planning.The Ministry said in a statement on Wednesday, June 26, that the plan is aimed at accelerating the country’s socioeconomic transformation through effective fiscal policy and enhanced accountability measures.The 5-year strategic plan means a significant shift from the historical focus on fiduciary controls to a more comprehensive financial and economic mandate. It includes initiatives to reduce public debt and propel Rwanda towards an inclusive and resilient low-carbon economy. ALSO READ: Accountability in local govt: districts commended for clean financial auditsThe plan will serve as a blueprint for how the government collects, spends, and manages public resources, and the subsequent impact on the economy and society.Key areas of focus within the strategic plan include strengthening effective and accountable public financial management, supporting the government in achieving its social and economic policy objectives, and addressing complex challenges such as climate change and gender inequality.The past five years witnessed substantial changes on both the global and national fronts, the Ministry said. Factors such as the COVID-19 pandemic and the escalating impacts of climate change have significantly impacted lives and livelihoods, placing immense pressure on public finances. Despite the challenges, the government remains steadfast in fortifying its approach to public financial management.During the launch of the strategic plan, Richard Tusabe, Minister of State for National Treasury and Chair of the PFM sector Coordination Forum, emphasised the importance of consolidating the robust fundamentals of PFM while enhancing the sector’s capacity to support the Government’s development agenda in the second National Strategy for Transformation (NST2).“Through collaborative efforts, the new strategy will ensure that our public financial management system aligns with Rwanda’s aspirations for inclusive growth, resilience, and sustainable development,” he remarked.ALSO READ: Clean audit opinion reflects progress in public finance managementLaurent Pred’homme, Deputy Head of Mission at the Belgium Embassy and co-chair of the PFM sector Coordination Forum, highlighted the significant achievements of the concluded PFM strategy, citing a higher number of qualified audits and increased government expenditure audits as evidence of progress.“The new strategy contains key reforms to address global challenges and contribute to Rwanda’s ongoing efforts towards efficiency, value for money, and enhanced accountability in line with the future ambitions of NST2,” he said.Over the next five years, the PFM strategy aims to address critical issues such as climate finance, fiscal decentralisation, and domestic revenue mobilisation.
