The government has allocated nearly Rwf45 billion in additional funds for pension contributions to the social security scheme for public employees in the 2024/2025 fiscal year. The funding, approved by Parliament on February 20 as part of a revised national budget of over Rwf5.8 trillion, is in line with recent reforms aimed at increasing pension contribution rates, according to the Ministry of Finance and Economic Planning (MINECOFIN). Overall, the revised national budget represents an increase of slightly more than Rwf126 billion compared to nearly Rwf5.7 trillion Parliament had okayed in June 2024. Regarding key changes that were made in the financial plan, MP Odette Uwamariya, Chairperson of the Committee on State Budget and Patrimony – which analysed the revised budget bill, said they include Rwf44.9 billion earmarked for bridging the gap in paying pension contributions for public sector personnel from different state entities. This amount implies that the payment of pension contributions for public servants will get the biggest share (35.5 per cent) of the supplementary budget. Such pension contributions are due to be paid to Rwanda Social Security Board (RSSB) as the administrator of the public pension fund, and are in line with implementing the recent decision to double the contribution rate from the previous six per cent of the employee’s basic salary to 12 per cent of their gross salary. In December 2024, RSSB explained that by calculating pension contributions based on gross salary rather than basic salary, transport allowances – which previously were not included in their determination – would be covered under the effected change. According to the Ministry of Finance and Economic Planning, the reforms were expected to ensure the long-term sustainability of the pension fund, improve the living conditions of the existing retirees, and ensure social security for future generations. ALSO READ: Six things you should know about new pension reforms Some other areas to receive portion from the supplementary budget Uwamariya said that the additional spending includes Rwf10 billion meant for paying government subsidies on chemical fertilisers and seeds – in an effort to lower costs for farmers in terms of accessing such farm inputs needed for food production. Earlier, the government allocated more than Rwf54 billion for subsidies on mineral fertilisers, and seeds (maize, wheat, and soybean) for the current fiscal year 2024/2025, according to information from Rwanda Agriculture and Animal Resources (RAB). Overall, in 2024/2024, more than 6.8 million kilos of seeds were expected to be delivered to farmers, while over 78.5 million kilos of chemical fertilisers were projected to be used for different crops including those which are not covered under seed subsidy, such as Irish potatoes, as per data from RAB. ALSO READ: Govt earmarks over Rwf54bn for fertilisers, seeds Other areas, Uwamariya said, include various sports activities which were allocated an additional Rwf5 billion. She indicated that Rwf3 billion was allocated to Rwanda Correctional Service (RCS) to fill a funding gap in food [purchases], and Rwf1.1 billion apportioned to National Rehabilitation Service (NRS) for feeding children in rehabilitation centres (including Iwawa Rehabilitation Center located in Rutsiro District, Western Province). Also, she said, Rwf3.5 billion earmarked for tax payment on the construction of a 63-kilometre Base-Butaro-Kidaho road. Overall, Uwamariya said that the supplementary funding was allocated to different public entities in order to address financing gaps both in recurrent budget [operating expenditures] and development budget [meant for implementing development projects]. Also, she said, MPs carried out an assessment of budget execution – since the commencement of the current fiscal year on July 1, 2024 – in different public entities so that funds are distributed based on top priorities. Information from MINECOFIN indicated that the budgetary adjustments made reflect changes in the resource envelope and aim to enhance allocation, support emerging national priorities, and improve public service efficiency.
