On May 03, 2023, the joint Plenary sitting of Parliament heard the presentation of The Minister of Finance and Economic Planning Dr Uzziel Ndagijimana today presented to both chambers of parliament, the Budget Framework Paper (BFP) and medium-term budget estimates for 2023/24-2025/26.
Minister Ndagijimana told parliamentarians that the budget for the fiscal year 2023/24 will reflect the medium-term fiscal path which allows for 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 by 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. The government will prioritize fiscal consolidation and focus on continued economic recovery through supporting businesses affected by covid-19, easing inflation and investing in agriculture,” Minister Ndagijimana said.
Rwanda’s economy is projected to grow by 6.2 per cent in 2023 compared to 8.2% in 2022. owing to global uncertainties, and by 6.7 and 7 per cent in 2024 and 2025 respectively.
Proposed 2023-24 Budget
The proposed total resources estimated for the fiscal year 2023/24 amount to Frw 5,030.1 billion, representing Frw 265.3 billion or a 6% increase compared to Frw 4,764.8 announced in the 2022/23 revised budget.
The projected budget is comprised of Frw 2,956.1 billion of domestic tax and non-tax revenue which represents 59% of the total budget, external grants of Frw 652.1 billion representing 13% of the entire budget and external loans will amounting to Frw 1,225.1 billion or 24% of the total budget.
On the expenditure front, the 2023/24 budget is projected to be Frw 5,030.1 billion. Development budget and policy lending is projected at Frw 1,991 billion while the recurrent budget is estimated at Frw 2,910.8 or 58% of the total budget.
Key priorities for the 2023/24 national budget will include strengthening the health system; increasing agriculture and livestock productivity; scaling up social protection coverage; improving the quality of education, 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 programs.
Other interventions will include support for Made in Rwanda; 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.
MPs received the Budget Framework Paper (BFP) and medium-term budget estimates for 2023/24-2025/26, and BFP will be sent to relevant committees for consideration.
