The Government has revised the 2025/2026 fiscal year budget to Rwf6,952.1 billion, a reduction of Rwf80.4 billion, citing better financial management and a shift towards more affordable funding for major national projects.
According to the Ministry of Finance and Economic Planning, the change is particularly attributed to securing more affordable concessional and domestic financing for the New Kigali International Airport project, and the rescheduling of a RwandAir loan repayment to the next fiscal year.
These measures together reduce the need for budgetary loans by Rwf645.4 billion.
Presenting the revised figures before lawmakers, Minister of Finance and Economic Planning Yusuf Murangwa said the changes follow an in-depth review of implementation progress and financing structures for the remainder of the fiscal year.
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During parliamentary discussions, Deputy Deogratias Bizimana Minani questioned the reason for the downward adjustment in allocations for Kigali International Airport Phase II.
"Why the cut when the budget was already approved? Was the first figure poorly calculated, or have construction material prices gone down? Because this is not a small difference,” he asked.
Responding, the Minister explained that the reduction reflects better financing terms rather than any shortfall in planning.
"When we were preparing the original budget, we included a worst-case scenario. We considered the possibility of borrowing from commercial banks, where interest rates would be high. At that stage, we had around $400 million earmarked for the airport.”
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He added that negotiations with the World Bank have since improved the financing terms.
"The bank agreed to cover 95 per cent of the required funding, providing concessional loans with lower interest rates and access to the full amount when needed. Originally, we were scheduled to receive the funds in June or July next year, but now the timing is flexible.”
This adjustment, he noted, will not delay airport construction. "That’s why the allocation for the airport came down in the budget, while funding for other priority areas was increased,” he said.
The revision also includes a Rwf198 billion reduction in the recurrent budget, bringing it down from Rwf4,312.9 billion to Rwf4,114.9 billion.
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The adjustment reflects changes in public debt servicing, subsidies, revenues from public enterprises, and spending on goods and services, according to the Minister.
At the same time, capital and development expenditure has increased by Rwf253.2 billion, reaching a total of Rwf2,115.8 billion. The minister said the rise reinforces government commitment to infrastructure development and strategic national priorities.
External financing is projected to rise by Rwf250.5 billion, largely driven by grants and concessional loans to support development projects.
Meanwhile, projected tax and other domestic revenues have been revised upward by Rwf41 billion, reflecting improved revenue performance and sustained economic activity.
Murangwa emphasised that the revision is a strategic realignment rather than a contraction in fiscal ambition, aimed at improving budget execution and aligning expenditures with realistic financing flows.
After deliberations, all deputies voted in favour of the revised budget, giving the Government full parliamentary backing to implement the adjusted fiscal framework for the 2025/2026 financial year.