Prime Minister Justin Nsengiyumva has underscored the importance of domestic revenue collection in the country’s development and self-reliance amid the declining share of external grants in financing the national budget.

He was speaking on Friday, December 12, in Kigali, during the Taxpayers Appreciation Day where compliant and outstanding taxpayers in 2024/25 fiscal year were recognised.

The event was held as Rwanda Revenue Authority (RRA) collected more than Rwf3.2 trillion in tax and non-tax revenues during the 2024/25, representing a 17.5 per cent increase compared to the previous year.

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Nsengiyumva commended RRA for exceeding the target the government had set for it by 2 per cent, adding that there are promising indicators that it will continue performing at that level.

"It is a source of pride that this good performance is largely due to taxpayers increasingly complying with tax laws and regulations,” said the Prime Minister.

Talking about the performance in the first five months of 2025/2026 fiscal year (July–November), the Commissioner General of RRA, Ronald Niwenshuti, said that more than Rwf1,456 billion was collected, against the target of more than Rwf1,449 billion, meaning the target was achieved at a rate of 100.5 per cent.

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Rwanda, like other developing countries, is facing the consequences of decreasing external grants, Nsengiyumva stated.

"Over the past fifteen years, the share of foreign grants in the national budget has continued to decline significantly. It dropped from nearly 37 per cent in the 2010/11 fiscal year to less than 10 per cent today,” the premier said.

ALSO READ: Rwanda’s tax revenues grow 38-fold

At a time when the world is facing economic instability, climate change, and global financial challenges, Nsengiyumva observed, indicators show that such grant will continue to decline.

"For Rwanda, this is not a problem. Rather, it is a call to strengthen our efforts. It reminds us that we must increase tax revenues as the most reliable pillar of development for generating domestic resources. We should remember that the grant we receive comes from the taxes paid by citizens of the donor countries,” he stated.

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Referring to the theme of this year’s taxpayer day, "Sora, Nsore, Twigire,” loosely translated to "Let’s pay tax for our self-reliance," he said that it reminds Rwandans that paying taxes helps us build a self-reliant country, one that has its own capacity, is secure, and has a voice on the international stage.

"Paying taxes is an act that shows the value we give to the country. Let us remember that Rwanda’s journey toward self-reliance is not the responsibility of a few; it is the duty of all of us. Your tax and mine are the path that leads us to true independence.”

The more taxpayers improve their compliance, Nsengiyumva stated, the more the government will reduce its reliance on foreign grants and increase investment in the projects and services Rwandans need.

He underscored that Rwanda’s problems will be best solved by Rwandans themselves, instead of waiting for external support that is not readily available.

He observed that it is the revenue from taxes which gives the government the capacity to fulfil its responsibilities toward Rwandans, including maintaining security, promoting health insurance, implementing the school feeding programme, and investing in infrastructure that facilitates investment and business.