Gvt announces Rwf4.6 trillion budget, puts emphasis on economic recovery and NST1 key projects

On 24 June 2022 at 12:31

The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana has presented the fiscal year 2022/23 National Budget to Parliament on behalf of Government of Rwanda.

The Rwf4.6 trillion budget proposal presented on Thursday 23rd June 2022, represents Rwf217.8 billion increase compared to the 2021-22 revised budget.

The rise in spending will fuel the ongoing economic recovery efforts as well as finance medium term development objectives enshrined in the National Strategy for Transformation.

“This budget reflects successes made in confronting the COVID-19 pandemic through vaccination roll out and other measures as well as the economic recovery that started in 2021. It has also considered the crisis brought by the Russia-Ukraine war, which is affecting the recovery efforts by rising oil and food prices,” Minister Ndagijimana told Parliamentarians.

Key changes in the 2022-2023 Budget

The estimated total resources for the fiscal year 2022/23 will amount to Rwf4,658.4 billion. Government will fund the entirety of the budget to a tune of 80.5%. This includes Rwf2,372.4 billion in domestic revenues, Rwf282.6 billion in domestic financing and Rwf1096.7 billion in external loans. External grants will account for Rwf906.9 billion which is 19.5% of the total budget

Corresponding to the revenue, Government is expected to spend Rwf4,658.4 billion in the next fiscal year, which is Rwf217.8 billion higher than the revised FY 2021/22 budget. Recurrent spending is estimated at Rwf2,654,9 billion representing 57% whereas capital expenditure is made up of Rwf2,073.3 billion representing 44.6% of the total budget.

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 and resilience to humans and social economic infrastructure to shocks.

Government will allocate Rwf2.7 trillion (about 58.5%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 mitigation measures. It will also increase access to electricity and clean water, support urbanization and settlement, improve the national road network, scale up adoption of ICT, automate Umurenge Sacco’s and implement agriculture de-risking and financing facility.

Social Transformation

Government will allocate about Rwf1.2 trillion (approximately 26.4% of the entire budget). The budget share will be spent on improving quality and access to health and education, eradicate extreme poverty through scaling up of social protection programs, improve nutrition through early detection, provision of fortified foods and scaling of 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 will spend Rwf707.1 billion (about 15.2%of the total budget). This allocation will focus on 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.

In the event of internal or external factors that may affect Rwanda’s operating economic environment, such as drought or decrease in global commodity prices that may affect the country’s export prices, Minister Ndagijimana assured.

Parliamentarians that Government will closely monitor such developments and take necessary measures to ensure full implementation of Rwanda’s economic program.