The government plans to spend about Rwf7.8 trillion in the 2026/27 fiscal year, an increase of Rwf844.2 billion, or 12.1 per cent, compared to the revised Rwf6.9521 trillion budget for the current 2025/26 fiscal year.
Minister of Finance and Economic Planning Yusuf Murangwa presented the figures to Parliament on Monday while tabling the Budget Framework Paper (BFP), a medium-term guide outlining Rwanda’s macroeconomic and fiscal policy directions and priorities for the period 2026/27 to 2028/29.
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According to Murangwa, the increase in spending will mainly be driven by strategic national projects, including the construction of the new Kigali International Airport, as well as additional support to RwandAir to help the national carrier cope with the effects of the ongoing conflict in the Middle East.
The proposed budget projects domestic revenues of Rwf5,273.8 billion, while foreign grants are expected to reach Rwf548.3 billion. External loans are projected at Rwf1,974.1 billion.
"In the 2026/27 budget, consideration has been given to the effects of the Middle East conflict, domestic revenue mobilisation, and improving the efficient use of public resources,” Murangwa told lawmakers.
He noted that the agriculture sector will continue receiving support aimed at increasing productivity and helping farmers adapt to climate change.
Murangwa said the key priorities in the 2026/27 budget will include continuing measures to address rising prices on the market and support economic growth.
"We will also accelerate implementation of projects aimed at improving economic development and social welfare, while strengthening efforts to ensure efficient use of public resources by prioritising urgent projects,” he said.
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The minister added that the government will continue supporting tax reforms aligned with common tax policies within the East African Community, while increasing efforts to respond to disasters and climate change.
Under the proposed expenditure framework, Rwf4,779.1 billion will go towards recurrent expenditure, while Rwf3,017.2 billion will be allocated to development projects and public investment.
Sector priorities
Murangwa said projects and programmes included in the budget were selected based on priorities under the Second National Strategy for Transformation (NST2), following consultations with ministries and institutions.
"The allocations were made in line with the three pillars of NST2, namely economic transformation, social transformation, and transformational governance,” he said.
The economic transformation pillar focuses on accelerating inclusive growth in agriculture, industry, and services, while strengthening climate resilience across productive sectors.
It also prioritises expanding domestic manufacturing, boosting exports to narrow the trade deficit, strengthening the financial sector, and creating sustainable jobs.
For the social transformation pillar, the emphasis is on improving the quality of education and healthcare, strengthening nutrition and early childhood development, reducing stunting, and supporting programmes that help citizens move out of poverty.
The transformational governance pillar centres on improving service delivery and public finance management, reinforcing the rule of law, increasing citizen participation, maintaining peace and security, and enhancing international cooperation.