12th June, The Plenary Sitting of the Chamber of Deputies has approved the relevance of the draft law determining the state budget for the 2025/2026 fiscal year. Shortly after, the Minister of Finance and Economic Planning, Yusuf Murangwa, unveiled the national budget proposal totalling Frw 7,032.5 billion, representing a 21% increase from the Frw 5,816.4 billion approved in the revised 2024/2025 budget.
This significant increase signals the Government’s commitment to accelerating national development through strategic investments in major infrastructure projects such as the New Kigali International Airport, as well as key sectors including agriculture, energy, transport, education, healthcare, and water and sanitation.
Speaking to Parliament, Minister Murangwa said:
“The Government is prioritizing spending to support investments that will help us achieve our NST-2 goals. We are also working to manage public finances carefully to reduce our budget deficit, stabilize debt, and make our economy more resilient to external shocks. At the same time, we want to improve household incomes and spending.”
The proposed budget of Frw 7,032.5 billion is balanced in terms of resources and expenditure. Projected financing comprises domestic revenues of Frw 4,105.2 billion, including Frw 3,628.0 billion from tax revenue and Frw 477.2 billion from non-tax revenue. External grants are estimated at Frw 585.2 billion, and external loans are projected at Frw 2,151.9 billion.
On the expenditure side, total spending is also set at Frw 7,032.5 billion, including recurrent spending of Frw 4,352.9 billion and capital spending of Frw 2,679.5 billion. Capital spending covers equity participation, investment fund shares, and policy lending.
The budget allocations are closely aligned with the National Strategy for Transformation (NST-2) priorities and focus on three main pillars:
Economic Transformation; allocated Frw 4,417.2 billion (62.8%), to support inclusive agricultural growth, improve access to electricity, water, and sanitation, develop transport infrastructure, and promote urbanization, climate resilience, and local manufacturing.
Social Transformation; allocated Frw 1,526.9 billion (21.7%), targeting investments in quality healthcare and education, social protection and nutrition programs, family and gender promotion, and disaster preparedness.
Transformational Governance; allocated Frw 1,088.4 billion (15.5%), to enhance good governance, reform the justice system, ensure efficient service delivery, improve public finance management, strengthen peace and security, and promote economic diplomacy.
These strategic allocations underscore the Government’s dedication to inclusive and sustainable development, ensuring that the 2025/2026 budget supports Rwanda’s continued growth and resilience.
