In a strategic move aimed at accelerating investments to realize the objectives of the National Strategy for Transformation (NST-1), the Government has unveiled a proposal for a budget of Frw 5,690.1 billion for the upcoming fiscal year (FY) 2024/2025, an increase of 11.2% from the previous budget.
The announcement was made by Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, this afternoon as he presented the proposed 2024/25 National Budget to Parliament on behalf of the Government.
The budget is intended to sustain economic growth, bolster climate change mitigation efforts, and fund crucial investments in: agriculture, private sector development, youth employment, energy, ICT, transport, and financial development. It will also speed up the implementation of key projects in priority sectors such as health, education, disaster management, social protection, governance, justice, and reconciliation, among others.
Addressing Parliamentarians, Minister Ndagijimana said “The 2024/25 budget proposal reflects Rwanda’s economic resilience in the face of external shocks. The Government remains committed to prioritizing spending, making strategic investments to achieve NST1 objectives, and maintaining economic stability.”
Key highlights of the 2024/2025 budget:
Total estimated resources for the fiscal year 2024/25 are projected at Frw 5,690.1 billion. This comprises domestic revenues of Frw 3,414.4 billion, with Frw 2,970.4 billion expected from tax revenues and Frw 444.0 billion from other revenues. External grants are estimated at Frw 725.3 billion, while external loans are projected to amount to Frw 1,318.1 billion. Domestic borrowing and financial assets drawdown will total Frw 232.3 billion.
Total expenditure for the fiscal year 2024/25 is forecasted at Frw 5,690.1 billion. This includes recurrent expenditure of Frw 3,466.3 billion and development expenditure of Frw 1,992.3 billion. The Government also anticipates additional Frw 231.5 billion for equity, investment fund shares, and policy lending.
Allocation in alignment with NST-1 pillars:
1. Economic transformation: Approximately Frw 3.393 trillion (59.6% of the budget) will be allocated to Economic Transformation. These resources will be directed towards enhancing agriculture productivity, job creation, private sector development, climate change adaptation, and mitigation efforts, as well as improving access to essential services such as electricity, clean water, and ICT adoption.
2. Social transformation: Around Frw 1.51 trillion (26.6% of the budget) will be allocated to Social Transformation initiatives. This funding will focus on improving healthcare and the quality of, and access to education, poverty eradication through social protection programs, nutrition enhancement, gender equality promotion, support for sports and culture, and disaster management enhancement.
3. Transformational governance: An allocation of Frw 784.7 billion (13.8% of the total budget) is earmarked for Transformational Governance. This funding will target quality service delivery, good governance, public finance management, justice system strengthening, peace and security maintenance, crime prevention, and the reinforcement of economic diplomacy.
The Government remains vigilant and prepared to take necessary measures to safeguard the economy against external factors that could impact Rwanda’s economy such as climate change and global economic shocks. (End)