Home Business & TechEconomy The Minister of Finance Tables Rwf4.6 Trillion Budget for FY 2022-23

The Minister of Finance Tables Rwf4.6 Trillion Budget for FY 2022-23

by Daniel Sabiiti
7:54 pm

The Minister of Finance and Economic Planning has presented the National Budget draft bill proposal for financial year (FY) 2022-23 with  an increase in budget spending and focus on projects to attain the National Strategy for Transformation (NST1).

The budget proposal, presented this June 23, 2022 to both Chambers of Parliament is Rwf4.6 trillion indicating an increase of Rwf217.8 billion equivalent to 5% compared to the earlier Rwf4.4 trillion approved in the 2021-22 revised budget line.

“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,” Minister of Finance Uzziel Ndagijimana told Parliamentarians.

“It has also considered the crisis brought by the Russia-Ukraine war, which is affecting the recovery efforts by rising oil and food prices.”

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 budget to a tune of 80.5%.

This includes Rwf2, 372.4billion in domestic revenues, Rwf 282.6 billion in domestic financing and Rwf 1096.7 billion in external loans.  External grants will account for Rwf 906.9 billion which is 19.5% of the total budget.

Corresponding to the revenue, the Government is expected to spend Rwf 4,658.4 billion in the next fiscal year, which is Rwf 217.8 billion higher than the revised FY 2021/22 budget.

Recurrent spending is estimated at Rwf2, 654,9billion 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.

The Government will allocate Rwf 2.7 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 Saccos and implement agriculture de-risking and financing facilities.

Moreover, Rwf1.2 trillion (approximately 26.4% of the entire budget) will be allocated to Social Transformation.

The budget share will be spent on improving quality and access to health and education, eradicating extreme poverty through scaling up social protection programs, improving 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 Rwf 707.1 billion (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.

Parliament unanimously approved the draft budget law determining the state finances for the 2022/2023 fiscal year.

This law shall come into force on the date of its publication in the Official Gazette of the Republic of Rwanda. It becomes effective from 1st July 2022.

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