Minister of Finance and Economic Planning, Yusuf Murangwa, presented the revised budget proposal to the Parliament on Wednesday, highlighting adjustments aimed at strengthening resource allocation, supporting emerging national priorities, and improving public service efficiency.
Murangwa noted that Rwanda's economy remains resilient despite global uncertainties, including climate change, inflation, and geopolitical challenges. Strong economic growth in the first three quarters of 2024 reflects this stability.
'The Government will continue to maintain macroeconomic stability and promote inclusive growth by investing in key areas such as agriculture, climate change, infrastructure, education, healthcare and social protection,' Murangwa stated.
Key changes in the revised budget
Overall, resources will increase by Frw 126.3 billion, from Frw 5,690.1 billion to Frw 5,816.4 billion. While tax revenue forecasts have been adjusted downward by Frw 20 billion, other revenue sourcesâ€"including increased privatization proceeds and external concessional loans will help offset this decrease.
On the expenditure side, the revision includes adjustments in both recurrent and capital expenditures. The development budget will rise by Frw 80.6 billion, from Frw 2,007.3 billion to Frw 2,087.9 billion.
This change affects both foreign and domestically financed capital expenditures allocated under different sectors. Meanwhile, the recurrent budget will increase by Frw 45.7 billion, from Frw 3,682.9 billion to Frw 3,728.5 billion, primarily due to an increase in pension contributions.
The revised budget for the 2024/25 fiscal year is part of the updated medium-term macroeconomic framework.
The Government has pledged continued close monitoring of all components of economic performance that may affect the implementation of the revised budget and necessary actions to ensure its full execution while maintaining macroeconomic stability.
IGIHE
