Rwanda to increase spending by 5.6% in 2023/2024 budget

Rwanda's economy has bounced back well since the height of the coronavirus pandemic, but macroeconomic imbalances have emerged, according to the International Monetary Fund (IMF). Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction, but rising food prices and strong domestic demand contributed to persistently high inflation, the IMF said earlier this month.

Rwanda's overall spending will increase by 5.6% in the 2023/2024 fiscal year to 5.03 trillion Rwandan francs ($4 billion) compared with the current period, finance minister Uzziel Ndagijimana said during a budget speech on Thursday. Ndagijimana said 63% of the budget would be financed by domestic revenues, while external loans would constitute 24% and external grants 13%.

"The budget reflects (the) government's economic resilience efforts in the face of global shocks," Ndagijimana said. Rwanda's economy has bounced back well since the height of the coronavirus pandemic, but macroeconomic imbalances have emerged, according to the International Monetary Fund (IMF).

Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction, but rising food prices and strong domestic demand contributed to persistently high inflation, the IMF said earlier this month. ($1 = 1,132.6600 Rwandan francs)