The government plans to spend Rwf7.8 trillion in the 2026/27 fiscal year, an increase of Rwf844.2 billion from the revised Rwf6.9 trillion budget for 2025/26.
This was revealed by the Minister of Finance and Economic Planning Yusuf Murangwa while presenting the budget framework paper to a joint sitting of Parliament on Monday, May 11.
"Total resources for the 2026/27 fiscal year comprise domestic revenues of Rwf5,273.8 billion,” Murangwa said in his budget speech, while highlighting the government’s medium-term spending priorities.
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The minister said the proposed budget will be financed through a combination of domestic revenues, grants and external loans.
Domestic revenues include Rwf4,429.1 billion from tax revenues, Rwf582.4 billion from other revenues, Rwf123.6 billion from acquisition of financial assets and Rwf138.8 billion from domestic financing.
Murangwa added that external grants are estimated at Rwf548.3 billion while external loans are expected to amount to Rwf1,974.1 billion.
On the expenditure side, recurrent spending, including salaries and operational costs, is projected at Rwf4,775.1 billion, while Rwf3,021.1 billion will go to development projects and government investments, including policy lending.
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"Funds allocated to the development budget and government investment, including policy lending, equity and investment, will amount to Rwf3,021.1 billion,” he said.
Murangwa told lawmakers that the budget priorities were agreed upon following consultations between the Ministry of Finance and Economic Planning and government institutions, with allocations aligned to the three pillars of the Second National Strategy for Transformation (NST2).
Agriculture, infrastructure
Under the economic transformation pillar, the government plans to prioritise agriculture, infrastructure, energy, ICT, private sector development and environmental protection.
In agriculture, planned interventions include timely distribution of fertilisers and improved seeds, expansion of irrigation schemes, construction of post harvest storage infrastructure, livestock vaccination and artificial insemination programmes, as well as expansion of crop and livestock insurance.
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Murangwa said the government also plans to strengthen strategic grain reserves and improve farmers’ access to finance.
Infrastructure projects expected to receive funding include the expansion of feeder roads and paved national roads, improvement of public transport systems, and construction of the expanded road leading to the new Kigali International Airport.
In the energy sector, the government plans to continue investing in electricity generation projects, including the Nyabarongo II hydropower plant, while also expanding electricity access to households and productive sectors.
The minister said the government would also continue developing Kigali Innovation City, promote conference tourism, support professional mining activities, and merge district SACCOs as part of plans to establish a Cooperative Bank.
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In the ICT sector, the government plans to expand implementation of e-services in sectors including justice, agriculture, public finance management and social protection, while continuing implementation of the digital national identity system.
Environmental protection projects include rehabilitation of Kigali wetlands, restoration of degraded forests, conservation activities around Volcanoes National Park, and acquisition of weather radar equipment to strengthen forecasting services.
Education, healthcare
Under the social transformation pillar, the government plans to invest in education, healthcare, social protection, youth development, and sports.
Planned interventions in education include recruitment of teachers, provision of teaching materials, expansion of school feeding programmes, and construction of classrooms and TVET schools in different districts.
The government also plans to complete construction of the veterinary medicine school and teaching hospital at the University of Rwanda’s Nyagatare campus.
In healthcare, priority projects include expansion of Muhororo, Kabgayi and Ruhengeri hospitals, continued construction works at Kibagabaga Hospital, and training of health workers.
The budget also provides for continued support to the community-based health insurance scheme, commonly known as Mutuelle de Sante, and interventions aimed at reducing child stunting.
Funds under social protection programmes will support vulnerable households through VUP schemes, improve the Social Registry system, and assist families affected by disasters or living in high-risk zones.
The budget framework further outlines support for sports talent development and youth programmes such as YouthConnekt and Art Rwanda Ubuhanzi.
Global economic pressures
Murangwa said the draft budget framework was prepared amid continued global economic uncertainty linked to conflicts in the Middle East.
"This draft budget framework for 2026/2027 has been prepared at a time when both the global economy and the national economy continue to face challenges arising from the conflict in the Middle East,” he said.
According to the minister, the crisis has contributed to rising prices of petroleum products, gas and fertilisers, as well as disruptions in global supply chains.
"These challenges were taken into account in designing the economic measures included in this draft state budget framework,” he said, adding that the government would continue monitoring the situation and take appropriate measures where necessary.
During the parliamentary session, lawmakers raised concerns over proposed allocations to agriculture and road infrastructure.
MP Minani Bizimana questioned what he described as reduced funding for agriculture despite the sector’s importance to the economy.
"There is a reduction in agriculture. Why is such an important sector set to experience the reduction?” he asked.
The legislator also questioned the limited support for staple foods such as bananas and sweet potatoes, compared with the stronger focus on Irish potatoes under improved seed programmes.
"These crops complement each other,” he added.
Bizimana further called attention to the deteriorating state of the Bugarama Kamembe road and asked the government what plans were in place for its rehabilitation.
Responding to the concerns, Murangwa said some allocations were still under review and indicated that discussions with the Ministry of Agriculture and Animal Resources would continue regarding crops that lawmakers felt needed additional support.
"We will talk with the agriculture ministry and look at what to do. I also agree that those crops shouldn't be left behind,” the minister said.