The Minister of Finance and Economic Planning, Yusuf Murangwa, is expected to present the budget statement to the parliament today, June 12, in which the government plans to spend more than Rwf7 trillion for the 2025/26 fiscal year. The minister is expected to outline the government’s revenue and expenditure plans for the upcoming financial year, following recommendation from members of parliament in May during which the Ministry of Finance was expected to adjust the proposed budget. The budget framework paper highlighting government’s plan to spend over Rwf7 trillion in the new fiscal year, which will begin on July 1, was presented to the parliament on May 8, and it was approved by the Cabinet on Monday, June 9. This envelope represents a 21 per cent increase – or over Rwf1.2 trillion compared to more than Rwf5.8 trillion approved for the current fiscal year. The increased budget is expected to primarily fund strategic investments, including the New Kigali International Airport – being constructed in Bugesera – and key development priorities such as job creation, industrialisation, boosting agricultural productivity, and scaling up decent housing. It will also fund expansion of electricity access, improve access to clean water and sanitation, strengthen the transport system, and upgrade education and healthcare services. The parliament had, in May, recommended the government to increase funding for agriculture to boost national productivity, raise investment in energy to achieve universal electricity access, and extend more support for private sector growth and youth employment initiatives. Members of the parliament had also tasked the finance minister to set aside a dedicated budget for genocide memorial preservation and rehabilitation, as well as additional funding for districts, including Nyamagabe, Gisagara, Rutsiro, Kamonyi, Karongi, and Kayonza, to accelerate poverty reduction efforts. Domestic resources on rise A significant portion of the budget will be domestically funded, reflecting continued progress towards sustainable financing. Data from the Ministry of Finance indicates that domestic revenues are projected to reach Rwf4.1 trillion, accounting for 58 per cent of the total budget estimates in 2025/26. This reflects an increase of 19 per cent compared to more than $3.4 trillion for the current fiscal year (or 59 per cent of the total spending for 2024/25). Domestic resources comprise over Rwf3.6 trillion from tax revenue, nearly 23 per cent higher than budget of 2024/25, and Rwf477.2 billion from other revenue collection. The finance ministry noted that the increase in the tax revenue projection will reflect the current and expected good performance of economic activities with the effect from the recently approved tax policy reforms and other tax measures under the medium-term revenue strategies. According to a budget framework paper covering three-year government spending priorities and fiscal policy from 2025/26 to 2028/29, domestic resources in the next financial year will be supplemented by external resources expected to reach an estimated more than Rwf2.7 trillion – or more than 38 per cent of the total proposed spending. This amount comprises Rwf585.2 billion from grants and over Rwf2.1 trillion from loans. The projected external loan amount for the coming fiscal year 2025/26 will be Rwf648.4 billion higher compared to more than Rwf1.5 trillion in the revised budget of the current fiscal year. Grants are projected to decline by 5.7 per cent compared to Rwf621.2 billion of the current 2024/25 budget.
