Revenue Improvement and Spending Efficiency Program-for-Results Operation

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The Revenue Improvement and Spending Efficiency (RISE) Operation aims to enhance revenue mobilization and promote efficient public investment in Rwanda. The Program is organized around three results areas (RA) to support the government's efforts to increase domestic revenue collection (RA 1) and make public investment and asset management more efficient and transparent at the national (RA 2) and subnational (RA 3) levels. The expected outcomes will be measured with the following indicators: (i) tax-to-GDP ratio is increased, (ii) percentage of central government procurement contracts that are signed within the initial bid validity period of 120 days, (iii) annual financial statements of SOCs and criteria for the allocation of subsidies to SOCs are published online, (iv) districts publish annual budget performance reports online, and (v) number of new and improved jobs expected through LED projects included in the budget. The Program builds on the World Bank’s long history of partnership with the Government of Rwanda in PFM reform. This includes previous efforts to ensure that PFM systems are responsive to the emerging needs of climate change, fiscal space consolidation, and greater demand for an inclusive approach to development. It is anchored in the PFM Sector Strategic Plan (SSP) and the Governance and Decentralization SSP for 2024-2029. These strategies constitute the cornerstones of the Government’s public finance and decentralization reform agenda and will expand and deepen the ongoing reforms under the Second National Strategic Transformation (NST-2). Accordingly, it will be implemented by the Ministry of Finance and Economic Planning in collaboration with the Ministry of Local Governments. The Program will also leverage existing PFM and decentralization structures, including Sector Working Groups. Technical assistance will be provided through an Investment Project Financing component.