Rwanda plans 21% increase in spending next fiscal year

Rwanda plans overall spending of 7-trillion Rwandan francs (R87.73bn) next fiscal year, 21% more than this year, finance minister Yusuf Murangwa said on Thursday.

The increased spending will support the construction of a new international airport and government priorities like boosting agricultural productivity, expanding electricity access and upgrading education and health care, the minister said in a budget speech.

The budget introduces tax changes to boost revenue, including through excise duties on cigarettes, beer and airtime, a new tourism tax and by reinstating value-added tax on some items like fuel.

Murangwa said the plan was for 58% of the budget to be financed from domestic sources, mainly tax revenue, 8% from grants and roughly 31% from external loans.

He said the government was working to stabilise debt and make the economy more resilient to shocks.

Domestic revenues are projected at 4.1-trillion Rwandan francs (R51.50bn) in the fiscal year starting in July.

The East African country's economy is forecast to grow 7.1% in 2025 and 7.5% in 2026.

The new international airport in Bugesera, about 40km from the capital Kigali, is expected to be ready by 2028 and cost about $2bn (R35.9bn)

Reuters