Rwanda’s $4.4 billion 2023/24 budget in a nutshell 

Rwanda proposes to boost spending to $4.4 billion in the next fiscal year. PHOTO | Courtesy

Rwanda proposes to boost spending to $4.4 billion (Rwf5 trillion) in the 2023/24 fiscal year from $4.3 billion (Rwf4.7 trillion) this year, RwandaPost has learnt.

The country will hold both Presidential and Parliamentary polls in August next year, and government seeks to ensure adequate preparation, the treasury indicated in the budget explanatory note sent to Parliament.

Lawmakers amended the constitution to allow both the polls to be held simultaneously (Parliamentary polls had been scheduled in September this year), a move the electoral body indicated was aimed at saving both time and budget.

The National Electoral Commission (NEC) executive secretary Charles Munyaneza told local media that the polls merger would see government spend $7 million (Rwf8 billion) on the two electoral events instead of $12.3 million (Rwf14 billion), effectively saving taxpayers some $5.2 million (Rwf6 billion).

Meanwhile, authorities bank on allocations in the budget to expedite progress on a number of ruling party promises ahead of polls.

In particular, implementation of President Paul Kagame’s pledges to the population, which may have not been executed is expected to be prioritised in the next fiscal year.

Salary increment

The new budget also caters for wages and salaries for teachers, District-level medical personnel and other civil servants in institutions whose structures were adjusted, or are due for horizontal promotion, including a 10 per cent pay rise for security organs.

Estimates seen by RwandaPost, which the finance and economic planning minister Uzziel Ndagijimana is scheduled to table in Parliament this Thursday, show the budget is made up of domestic revenues amounting to $2.6 billion (Rwf2.9 trillion) — $2.2 billion from tax revenue and $343.2 million from other revenue collection. 

Domestic resources amounted to $2.2 billion in the current fiscal year.

External grants are estimated at $573.9 million (Rwf652.1 billion) whilst external loans of $1.07 billion (Rwf1.2 trillion) is envisaged for accrual to the Treasury. Domestic borrowing and financial assets drawdown are amounted to $173.2 million (Rwf196.7 billion).

Expenditures projections

The treasury indicates that of the $4.4 billion 2023/24 budget,  $2.5 billion (57.7 per cent) is recurrent spending while $1.6 billion (37.7 per cent)  is capital spending.

Government equally plans to inject $22.4 million in equity and investment fund shares. These include Development Bank of Rwanda (BRD), Eurobond projects and others.

Other expenditure priorities span the agriculture sector, environment and infrastructure development.

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In particular, government plans to invest more in availing affordable seeds and fertilizers, increase area under irrigation, agriculture mechanization, strategic grain reserve, credit to agriculture and improving tea and coffee production. 

Government is also moving to operationalize two facilities created ahead of the UN climate negotiations (COP27) last year to mobilize climate finance for mitigation and adaptation measures. 

A chunk of next fiscal year’s budget will also go towards increasing the storage capacity of the oil strategic reserve and distribution of improved cooking stoves to reduce biomass use as cooking fuel. 

The rehabilitation of non-functional water supply systems and networks, and improvement of water supply and sanitation in urban and rural areas also appear on the list of priorities.

More monies will go towards construction of Amahoro Stadium, and basic Infrastructure support to affordable housing projects namely BWIZA Project and RUGARAMA Project, the treasury indicated.

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