Rwanda will increase government spending by Rwf126.3 billion ($101 million) in the 2024/25 fiscal year, raising total expenditures to Rwf5.816 trillion, as the country adapts to shifting economic conditions and ramps up investment in key sectors.
Minister of Finance and Economic Planning, Yusuf Murangwa unveiled the revised budget proposal in Parliament, citing a recalibrated resource envelope that supports national priorities while ensuring macroeconomic stability. The adjustment comes as Rwanda navigates global uncertainties, including inflationary pressures, climate risks, and geopolitical tensions.
“Rwanda’s economic growth remains resilient, driven by strong performance in the first three quarters of 2024,” Murangwa told lawmakers. “The government is committed to maintaining stability and fostering inclusive growth through strategic investments in agriculture, infrastructure, education, healthcare, and climate resilience.”
While tax revenue projections have been revised downward by Rwf20 billion, increased privatization proceeds and external concessional loans will offset the shortfall. Development spending will rise by Rwf80.6 billion, with allocations expanding across foreign- and domestically financed capital projects. Meanwhile, recurrent expenditure is set to increase by Rwf45.7 billion, primarily reflecting higher pension contributions.
The revised budget for the 2024/25 fiscal year is part of the updated medium-term macroeconomic framework and government will closely monitor economic conditions to ensure effective budget execution, balancing increased spending with fiscal discipline to sustain growth momentum.
