May 6, 2024 - Rwanda’s proposed budged for the fiscal year 2024/25 amounts to Frw 5,690.1 billion, a 11.2% increase (Frw 574.5 billion) from the revised budget for the fiscal year 2023/24.

Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana made the announcement today as he presented to both chambers of parliament the Budget Framework Paper (BFP) and medium term budget estimates for 2024/25-2026/27.

The budget for the fiscal year 2024/25 will reflect the medium term fiscal path which allows for the implementation of the National Strategy for Transformation (NST) goals while maintaining public debt to sustainable levels.

Rwanda’s economy remains strong despite challenging global context. It maintained a robust growth increasing by 8.2 percent, 2 points higher than projected, supported by  strong performance in services and industry, as well as recovery in food crop production in the second half of the year.

“Rwanda’s growth momentum remains strong, despite challenging environment caused by climate change effects, global inflation, geopolitical tensions among other challenges. Our economic recovery has been strong despite setbacks. Government will continue to maintain macroeconomic stability and high inclusive growth by investing in key sectors such as agriculture, healthcare, social protection, education among others,” Minister Ndagijimana said.

Rwanda’s economy is projected to grow by  6.6 percent, 6.5 percent, 6.8 in 2024, 2025, and 2026 respectively, before reaching 7.2 percent in 2027. 

Proposed 2024-25 Budget

The proposed total resources estimated for fiscal year 2024/25 amount to Frw 5,690.1 billion.  This amount is made up of domestic revenues amounting to Frw 3,414.4 billion comprising of Frw 2,970.4 billion from tax revenue and Frw 444.0 billion from other revenue collection.  External grants are estimated at Frw 725.3 billion whilst external loans are estimated to be Frw 1,318.1 billion.

On the expenditure front, the 2024/25 budget is projected to be Frw 5,690.1 billion where this figure is Frw574.5 billion higher than the revised budget for the fiscal year 2023/24 of Frw 5,115.6 billion. The 2024/25 figure is made up of recurrent spending of Frw 3,421.2 billion. On capital spending side, the estimated amount is Frw 2,037.4 billion for both foreign and domestically financed projects, but this also include spending under various equity investment shares projected at FRW 39.8 billion and funds for government policy lending estimated at Frw 60.7 billion.

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 of employment opportunities.

Other interventions will include promotion of digital technologies to improve service delivery; strengthening disaster prevention and response, implementing environment and natural resources policies among others.

BFP is a document outlining Government economic policies over the medium term that helps lay the foundations of the next fiscal budget. It is prepared in accordance with article 34 of the Organic Law on public finance management and outlines the Government’s macroeconomic and fiscal policy stance as well as the budget policy over a 3-year horizon. The 2023/24-2025/26 BFP provides basis for the preparation of the 2023/24 budget which will be read in June this year.

Policies and strategies over the medium term are by and large guided by Vision 2050, National Strategy for Transformation (NST1) as well as the seven-year government program.