Rwanda Finmin Ndagijimana presents revised budget 2022/23

The Government of Rwanda through the Ministry of Finance and Economic Planning has announced a proposal to increase the fiscal budget for the upcoming 2022-2023 financial year by 2.3 per cent to Rwf4.8 trillion from the initial Rwf4.6 trillion budget announced in June 2022. CNBC Africa has been closely following the developments at the Parliament where the revised budget was presented, shedding light on the reasons behind this budget adjustment. The main goal of the budget revision is to respond to the ongoing efforts aimed at boosting economic recovery and creating more job opportunities. The government aims to support businesses, especially private enterprises, to facilitate a quick recovery from the challenges posed by the pandemic and other economic disruptions. This move aligns with the government's commitment to enhancing the overall economic landscape and ensuring the well-being of its citizens. In a statement, the Minister of Finance highlighted the significant progress in GDP growth, which increased by an impressive 8.5 per cent over the first three quarters of the previous year. The budget revision reflects the success and effectiveness of the economic recovery plan, which has played a crucial role in sustaining businesses, fostering new investments, generating employment opportunities, and maintaining robust social protection measures. One of the primary questions arising from this budget proposal is the source of financing to support the increased budget allocation. The Minister pointed out that the government anticipates a rise in tax revenues, with an expected increase of approximately 115 billion Rwandan francs to a total of 2.5 trillion Rwandan francs. Moreover, there is a projected increment in domestic financing by around 39.4 billion Rwandan francs compared to the original budget figures, emphasizing the government's commitment to securing the necessary resources. The revised budget reflects the government's strategic spending priorities, with a focus on key sectors such as healthcare, education, agriculture, and information communication technology (ICT). Notably, the government aims to implement a universal school feeding program to enhance access to nutrition for students across all educational levels. Another significant allocation is earmarked for the development of the Centre of Excellence for Biomedical Sciences in Kigali, underlining the government's efforts to advance healthcare infrastructure and services. In a dialog with CNBC Africa, the Minister of Finance provided insights into the budget review process, emphasizing the utilization of additional resources and reallocation of funds based on performance assessment. The Minister highlighted that the budget adjustments would primarily bolster the social sector, particularly education and agriculture, through initiatives such as the school feeding program and increased support for agricultural production. Regarding the economic outlook, the Minister expressed optimism about the country's growth prospects, citing the noteworthy GDP growth of 8.5 per cent in the previous year. The Minister indicated that the economy is poised for continued growth in the upcoming year, surpassing the initial projections. Despite global challenges, the government remains confident in the resilience of key sectors such as agriculture, services, and industry, which are expected to drive economic expansion. Furthermore, the Minister addressed the ongoing efforts to revise the tax regime in Rwanda, emphasizing the need to maintain tax revenues while exploring avenues to streamline tax procedures and potentially reduce tax rates. The government's objective is to strike a balance between revenue generation and taxpayer-friendly policies, ensuring sustainable economic growth and business development. In conclusion, Rwanda's proposed revised budget for 2022-2023 underscores the government's commitment to advancing economic recovery, promoting social well-being, and fostering a conducive environment for business growth and job creation. With a strategic focus on key sectors and prudent fiscal management, Rwanda is poised to navigate the evolving economic landscape and capitalize on growth opportunities in the coming year.