The State Finance Bill of 2023/2024 was tabled before the Joint Assembly

On 15 June 2023, Minister of Finance and Economic Planning, Dr Uzziel Ndagijimana tabled before the joint assembly the state finance bill of 2023/2024. The Chamber of Deputies approved its relevance, and it is being considered on the standing committee level.

Besides, the Senate will provide its opinion to the Chamber of Deputies prior to its adoption of the State budget in line with the Constitution and other laws.

While presenting the proposed 2023/24 National Budget, Minister of Finance and Economic Planning, Dr Uzziel Ndagijimana assured that during the budget drafting the inputs raised by parliamentarians during the recent budget hearings were incorporated.

He added that the Frw 5,030.1 billion budget proposal for the 2023/2024 fiscal year represents Frw 265.3 billion or 6% increase compared to Frw 4,764.8 announced in the 2022/23 revised budget.  The rise in spending will fuel ongoing economic recovery, support climate change mitigation as well as finance key investments in education, healthcare, ICT, agriculture and infrastructure through the National Strategy for Transformation.

“The budget reflects the Government’s economic resilience efforts in the face of global shocks. The government will continue to prioritize fiscal consolidation, ease inflation and invest in agriculture, scale up social protection coverage; improve the quality of education, create employment opportunities and support micro, small, medium and large enterprises affected by COVID-19 through the enhanced Economic Recovery Fund and Manufacture and Build to Recover Program”, Minister Ndagijimana told Parliamentarians.

Key changes in the 2023/2024 Budget

Estimated total resources for the fiscal year 2023/24 will amount to Frw 5,030.1 billion. The proposed budget is comprised of Frw 2,956.1 billion of domestic revenue  which represents 63% 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 

Total expenditure in the fiscal year 2023/24 is projected at Frw 5,030.1 billion. This figure is made up of recurrent expenditure of Frw 2,902.3 billion representing 57.7% and development expenditure of Frw 2,127.7 billion representing 42.3%.

Key allocations in line with the National Strategy for Transformation

Prioritization in resource allocation to various sectors has been guided by critical considerations that enhance NST1 delivery, economic recovery plan interventions, prioritization of ongoing projects, emphasis on transformation and sustainability as well as resilience to social economic shocks. In this regard, Government will allocate Frw 2.8 trillion (about 55.9% of the entire budget) to the Economic Transformation Pillar. These resources will scale up agriculture productivity, create jobs, support private sector development, and strengthen climate change adaptation and mitigation measures. It will also increase access to electricity and clean water, support urbanization and settlement, improve the national road network, scale up the adoption of ICT, and implement agriculture de-risking and financing facilities.

Social Transformation

Under the social transformation pillar, Government will allocate Frw about Frw1.5 trillion (approximately 30.4% of the entire budget). The budget share will be spent on improving quality and access to health and education, eradicating extreme poverty through scaling up social protection programs, improving nutrition through early detection, provision of fortified foods and scaling early childhood development facilities. The funds will also promote family and gender, sports, and culture as well as disaster management through enhancing disaster preparedness, response and recovery.

Transformational Governance

Under the transformational governance pillar, Government plans to spend Frw 690.1 billion (about 13.7 % of the total budget). This allocation will focus on the promotion of quality service delivery across public and private sectors, good governance, and transformational leadership, strengthening public finance management, strengthening justice, law, and order, maintaining peace and security and strengthening crime prevention as well as supporting international cooperation through strengthening economic diplomacy.

Regarding internal or external factors that may affect Rwanda’s operating economic environment, such as drought or a decrease in global commodity prices that may affect the country’s export prices, Government will closely monitor such developments and take necessary measures to ensure full implementation of Rwanda’s economic program.