Revised budget: What you should know

Rwanda plans to spend over Rwf4.7 trillion up from Rwf4.6 trillion in the fiscal year 2022-23, reflecting an additional Rwf106.4 billion injection (2.3 percent), if a revised budget proposal tabled before parliament on Wednesday, February 8, is approved. The development was announced by the Minister of Finance and Economic Planning, Uzziel Ndagijimana. As it stands, nearly 60 percent of the initial budget has been spent, and according to Ndagijimana, the next four months will necessitate additional funding to support efforts of strengthening economic recovery as well as tackling the impact of the Ukraine-Russia crisis. The additional injection comes at a time when the country is experiencing significant economic growth, despite current spiked inflation rates, according to Minister Ndagijimana. Also Read: Rwanda to raise public spending to spur economic recovery Beyond the global economic shocks, Minister Ndagijimana added, increased funding was also allocated to various sectors to be able to meet their targets set under the National Strategic Transformation (NST1) which concludes next year. Here are the five key changes you should know Four sectors take lion’s share Education, Agriculture, health care and ICT will take most of the funds in the proposed budget. According to Minister Ndagijimana, additional investments in the four sectors will be at the forefront of the ongoing government effort to invest in “Rwanda’s future”, through the NST1. Specific allocations of the funds were not shared by time of publication, but The New Times understands that all the four sectors received significant additional funds in the revised budget. Domestic revenues increased The proposed revised budget, Ndagijimana said, contains several important adjustments, including an increase of domestic revenues by Rwf115.2 billion from Rwf2,372.4 billion in the original budget to Rwf2,487.6 billion (4.7 percent). Another increase was witnessed in domestic financing increased by Rwf39.4 billion from Rwf282.6 billion in the original budget to Rwf322 billion. On the expenditure front, recurrent budget will increase by Rwf162.3 billion from Rwf2,543.2 billion to Rwf2,705.5 billion. The expenditure envelope has been revised to support recurrent activities such as increase of the number of teachers and their salaries, supporting universal school feeding programs, as well as additional fertilizers to boost coffee production. Economy to grow despite shocks Despite persistent challenges stemming from Covid-19 effects, global supply chain issues, inflationary environment and impact of climate shocks, Rwanda’s economy continues to show strong signs of recovery, according to Ndagijimana. Over the first three quarters of 2022, the economy registered an 8.5 percent growth, with signs of beating projections. This budget revision, he pointed out, 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. Meanwhile, he said, a stronger recovery has increased government revenues, including Rwf113.2 billion increase in tax revenue from Rwf 2,067.7 billion in the original budget to Rwf2,180.9 billion representing 5.1 percent increase. Also expected to increase is the non-tax revenue by Rwf2 billion from Rwf304.6 billion to Rwf306.7 billion, thanks to the continued recovery through increased internally generated revenue streams.

News

Revised budget: What you should know