Minister Murangwa presenting the budget speech before Parliament on Wednesday.
The Government of Rwanda has announced an increase in revenue and spending for the 2024/25 fiscal year by Rwf126.3 billion, raising the total from Rwf 5,690.1 billion to Rwf 5,816.4 billion.
This was announced by the Minister of Finance and Economic Planning, Yusuf Murangwa, during while delivering the revised budget proposal to Parliament on Wednesday.
The adjustments reflect changes in the resource envelope and aim to enhance resource allocation, support emerging national priorities, and improve public service efficiency.
Minister Murangwa told lawmakers that Rwanda’s economic trajectory remains on the right track, with several key sectors showing resilience and good performance amidst global and regional shocks.
“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,” Murangwa said.
“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 added.
Minister Murangwa explained to the house some of the key areas the government is going to increase expenditure.
What are some of the key changes in the 2024/25 Revised Budget?
Overall, resources will increase by Rwf126.3 billion, from Rwf 5,690.1 billion to Rwf5,816.4 billion. While tax revenue forecasts have been adjusted downward by Rwf20 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 Rwf 80.6 billion, from Rwf 2,007.3 billion to Rwf 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 Rwf 45.7 billion, from Rwf 3,682.9 billion to Rwf 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.
