Domestic revenue to fund 63% of Rwanda's 2023-2024 budget

The budget for the new fiscal year, which starts on July 1, will be 5.03 trillion Rwandan francs (about $4.76 billion), up 265.3 billion Rwandan francs, or 6%t, as compared to the revised 2022-2023 budget of 4.7 trillion Rwandan francs, the Finance Minister Uzziel Ndagijimana told lawmakers in Kigali, the capital of Rwanda.

The total budget will be funded by 63% domestic revenue, 13% external grants and 24 % external loans, according to the minister.

In the 2022-2023 budget, domestic resources represented 57% of the total.

The minister said the latest budget is made up of recurrent expenditure representing 57.7% and development expenditure of 42.3%.

Domestic financing from taxes, non-tax revenues and loans combined will fund 87% of the budget compared to 80.5% in the 2022-2023 budget.

"The resource allocation was guided by critical considerations that enhance National Strategy for Transformation goals delivery, economic recovery plan interventions, prioritization of ongoing projects, emphasis on transformation, sustainability and resilience to social economic shocks," Ndagijimana said.

He said the budget features development, social and governance pillars.

The development pillars highlighted include agriculture irrigation, inputs, animal production and terracing while in the governance pillar funds will be allocated to organizing next year's parliamentary and presidential elections, construction and rehabilitation of correctional centers.

Funding will also be allocated to enhancing value chains, power as well as clean water projects.

"The budget reflects the government's economic resilience efforts in the face of global shocks," Ndagijimana said.

He said the government will continue to "prioritize fiscal consolidation, ease inflation and invest in agriculture, scale up social protection coverage as well as improve the quality of education."

Other priorities cited include the creation of employment opportunities, and supporting micro, small, medium and large enterprises affected by COVID-19 through an enhanced economic recovery fund.

Rwanda's economy is projected to grow 6.2% in 2023, compared to 8.2% in 2022, Ndagijimana said.