Parliament on Thursday, February 12, approved changes to the 2025/2026 national budget, including a Rwf168.2 billion cut for the construction of the New Kigali International Airport Phase II. The Minister of Finance and Economic Planning Yusuf Murangwa said that the government has secured more affordable concessional and domestic financing for the new airport, located in Bugesera District in the Eastern Province. “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.” ALSO READ: Rwanda banks to issue $322m guarantees for New Kigali International Airport 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. Overall budget revised down Overall, the national budget was revised down from the Rwf7,032.5 billion initially approved in June 2025 to Rwf6,952.1 billion, a reduction of Rwf80.4 billion. The Ministry cited better financial management and a shift towards more affordable funding for major national projects. The affordable funding the government has secured has meant that the government will reschedule its loan repayment for RwandAir to the next fiscal year, among other strategies to keep finances in check. ALSO READ: Cabinet approves Rwf7 trillion national budget for 2025/26 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. ALSO READ: PHOTOS: Rwanda’s new international airport ground-level works 85% complete 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.
