On June 20, 2024, the Government and Development Partners came together to validate a new public financial management strategic plan (PFM SSP 2024-2029) aimed at accelerating Rwanda’s socioeconomic transformation through effective fiscal policy and enhanced accountability measures.
The 5-year strategic plan means a significant shift from the historical focus on fiduciary controls to a more comprehensive financial and economic mandate. This includes initiatives to reduce public debt and propel Rwanda towards an inclusive and resilient low-carbon economy. The plan will serve as a blueprint for how the Government collects, spends, and manages public resources, and the subsequent impact on the economy and society.
Key areas of focus within the strategic plan include strengthening effective and accountable public financial management, supporting the Government in achieving its social and economic policy objectives, and addressing complex challenges such as climate change and gender inequality.
The past five years witnessed substantial changes on both the global and national fronts. Factors such as the COVID-19 pandemic and the escalating impacts of climate change have significantly impacted lives and livelihoods, placing immense pressure on public finances. Despite these challenges, the Government remains steadfast in fortifying its approach to public financial management.
During the launch of the strategic plan, Richard Tusabe, Minister of State for National Treasury and Chair of the PFM sector Coordination Forum, emphasized the importance of consolidating the robust fundamentals of PFM while enhancing the sector’s capacity to support the Government’s development agenda in second National Strategy for Transformation (NST2).
“Through collaborative efforts, the new strategy will ensure that our public financial management system aligns with Rwanda’s aspirations for inclusive growth, resilience, and sustainable development,” stated Minister Tusabe.
Laurent Pred’homme, Deputy Head of Mission/Head of Cooperation at the Belgium Embassy and co-chair of the PFM sector Coordination Forum, highlighted the significant achievements of the concluded PFM strategy, citing a higher number of qualified audits and increased government expenditure audits as evidence of progress.
“The new strategy contains key reforms to address global challenges and contribute to Rwanda’s ongoing efforts towards efficiency, value for money, and enhanced accountability in line with the future ambitions of NST2,” remarked Mr. Pred’homme.
Over the next five years, the PFM strategy aims to address critical issues such as climate finance, fiscal decentralization, and domestic revenue mobilization. (Fin)