Rwanda will spend slightly over Rwf5 trillion in the fiscal year 2023/24, which represents an increase of Rwf265 billion or 6 per cent compared to Rwf4.7 trillion announced in the 2022/23 revised budget, the Minister of Finance and Economic Planning has said.

Ndagijimana made the disclosure on Wednesday, May 3, as he presented to both chambers of Parliament, the Budget Framework Paper (BFP) and medium term budget estimates for 2023/24-2025/26.

The Budget Framework Paper is a document outlining Government economic policies over the medium term that helps lay the foundations of the next fiscal budget.

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The projected budget is comprised of Rwf2.9 trillion of domestic tax and non-tax revenue which represents 59 per cent of the total budget, external grants of Rw652 billion representing 13 per cent of the entire budget and external loans amounting to Rwf1,225 billion or 24 per cent of the total budget.

"Overall, domestically mobilized resources, plus external loans that the country will repay, account for about 76 per cent of the total budget for 2023/2024,” he said.

On the expenditure front, development budget and policy lending is projected at Rwf1,991 billion, while recurrent budget is estimated at Rwf2,910 billion – accounting for 58 per cent of the total budget.

According to information from MINECOFIN, key priorities for the next fiscal year (2023/24) national budget will include strengthening the health system; increasing agriculture and livestock productivity; scaling up social protection coverage; and improving the quality of education.

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Others are creating employment opportunities through investment in public works and support to micro, small, medium and large enterprises affected by Covid-19 through the economic recovery fund and manufacture to build and recover programmes.

Also, interventions will include support for Made in Rwanda – for the growth of domestically made or manufactured products; promotion of digital technologies to improve service delivery; improving access to quality education; eradication of malnutrition and stunting and strengthening disaster preparedness and management among others.

MINECOFIN indicated that the budget for the fiscal year will reflect the medium term which allows for an increased spending to reach National Strategy for Transformation (NST1) goals while maintaining public debt to sustainable levels.

Despite ongoing economic recovery, Rwanda is still dealing with Covid-19 pandemic effects, climate change, high inflation, and ongoing supply chain issues caused by the Russia-Ukraine war among other economic challenges.

However, the Government will continue to champion economic recovery through supporting businesses affected by Covid-19 and creating jobs. On top of that, key investments in education, healthcare, ICT, and agriculture will be at the forefront of the ongoing government effort to invest in Rwanda’s future, through the National Strategy for Transformation.

"Our economic recovery has been strong despite global shocks. Government will prioritise fiscal consolidation and focus on continued economic recovery through supporting businesses affected by covid-19, easing inflation and investing in agriculture,” Ndagijimana said

Data from MINECOFIN indicate that Rwanda’s economy is projected to grow by 6.2 percent in 2023 compared to 8.2 per cent in 2022, owing to global uncertainties, and by 6.7 and 7 per cent in 2024 and 2025 respectively.