February 5, 2025: The Government of Rwanda has announced an increase in revenue and spending for the 2024/25 fiscal year by Frw 126.3 billion, raising the total from Frw 5,690.1 billion to Frw 5,816.4 billion. This announcement was made by Minister of Finance and Economic Planning, Yusuf Murangwa, during his speech of the revised budget proposal to Parliament.

The adjustments reflect changes in the resource envelope and aim to enhance resource allocation, support emerging national priorities, and improve public service efficiency.

“Rwandan economic growth remains robust amid global uncertainties, including the effects of climate change, global inflation, and geopolitical tensions. This is evidenced by strong growth in the first three quarters of 2024. The Government will continue to maintain macroeconomic stability and promote inclusive growth by investing in key areas such as agriculture, climate change, infrastructure, education, healthcare and social protection,” Minister Murangwa stated.

Key Changes in the 2024/25 Revised Budget:

Overall, resources will increase by Frw 126.3 billion, from Frw 5,690.1 billion to Frw 5,816.4 billion. While tax revenue forecasts have been adjusted downward by Frw 20 billion, other revenue sources—including increased privatization proceeds and external concessional loans will help offset this decrease.

On the expenditure side, the revision includes adjustments in both recurrent and capital expenditures. The development budget will rise by Frw 80.6 billion, from Frw 2,007.3 billion to Frw 2,087.9 billion. This change affects both foreign and domestically financed capital expenditures allocated under different sectors.Meanwhile, the recurrent budget will increase by Frw 45.7 billion, from Frw 3,682.9 billion to Frw 3,728.5 billion, primarily due to an increase in pension contributions.

The revised budget for the 2024/25 fiscal year is part of the updated medium-term macroeconomic framework. The Government will continue to closely monitor all components of economic performance that may affect the implementation of the revised budget and will take necessary actions to ensure its full execution while maintaining macroeconomic stability.