The Minister of Finance and Economic Planning, Yusuf Murangwa, will present to Parliament the national budget for the 2026/27 fiscal year Thursday, June 11. This follows Cabinet approval on Monday. The Cabinet meeting approved the draft State Finance Law, setting the proposed budget at Rwf7,796.3 billion, aligned with government priorities under the Second National Strategy for Transformation (NST2). On Thursday, finance ministers across the East African Community (EAC) will present the budget for the next fiscal year. Budget to increase by 12% Rwanda's proposed budget for next fiscal year represents a 12 per cent increase from the revised Rwf6.9 trillion budget for 2025/26, translating into an additional Rwf844.2 billion. ALSO READ: Where Rwanda’s Rwf7.8tn budget will go in 2026/27 According to the Office of the Prime Minister, the proposed increase aims to support agricultural production, drive industrial growth, create jobs and sustain macroeconomic stability. According to the draft budget, by broad development pillars, economic transformation takes the largest share at Rwf4,999 billion, followed by social transformation (Rwf1,669 billion) and transformational governance (Rwf1,135 billion). Where the money will come from The government plans to finance the budget through domestic revenue, grants and borrowing. ALSO READ: Govt highlights spending priorities for 2026-27 Domestic resources will contribute 68 per cent of total financing, equivalent to Rwf5,273.8 billion. This reflects continued efforts to reduce dependence on external support. The domestic component includes Rwf4,429 billion from tax revenue, Rwf582.4 billion from other revenues, Rwf123.6 billion from acquisition of financial assets and Rwf138.8 billion from domestic financing. Foreign grants are projected at Rwf548.3 billion, representing around 7 per cent of the budget. External loans are expected to reach Rwf1,974 billion. The loans are expected to support both recurrent spending and long-term development projects. ALSO READ: MPs warn over cuts to agriculture, transport funding Overall expenditure is divided into Rwf4,775.1 billion for recurrent spending, including salaries and operations, and Rwf3,021.1 billion for development projects and government investment. Key projects to be financed According to the draft budget, the proposed spending plan prioritises investment across productive and social sectors. Agriculture is proposed to receive Rwf352.5 billion, with funds expected to support fertiliser and seed distribution, irrigation, post-harvest facilities, grain reserves, livestock productivity and agricultural insurance. Up to Rwf305.3 billion has been earmarked for infrastructure and transport to finance road upgrades including Kigali-Muhanga and Base-Butaro, feeder roads, public transport improvements and construction of the expressway to the New Kigali International Airport in Bugesera District. ALSO READ: Experts push for jobs, energy security, and resilience in 2026/27 budget The energy sector is expected to receive Rwf350.1 billion to support the Nyabarongo II Hydropower Plant, expand electricity access and promote clean cooking initiatives. Education could receive Rwf888.7 billion, the largest proposed social sector allocation, to support school infrastructure, teacher recruitment, school feeding, TVET expansion and completion of a veterinary medicine school and teaching hospital at the University of Rwanda’s Nyagatare campus. Rwf489 billion is earmarked for health to support hospital upgrades including Muhororo, Kabgayi, Ruhengeri and Kibagabaga, alongside continued investment in maternal and child healthcare and community-based health insurance. The draft budget proposes Rwf121.7 billion for ICT to expand digital services, strengthen cybersecurity, advance the digital identity programme and support digital literacy and innovation. Private sector development and employment are set to receive Rwf195.3 billion to support industrial parks, tourism, mining, SME growth, internships and job creation. Environment programmes could receive Rwf147.4 billion for wetland restoration, weather radar systems, climate resilience and disaster preparedness. Meanwhile, Rwf153 billion has been earmarked for social protection programmes to support vulnerable households through VUP programme and youth initiatives. Global pressures remain a concern While presenting the proposed budget framework paper to Parliament on May 11, Minister Murangwa said the draft budget had been prepared amid continued global uncertainty linked to tensions in the Middle East, which have driven up energy and fertiliser prices and disrupted global supply chains. “These challenges were taken into account in designing the economic measures included in this draft state budget framework,” he said. He added that the government would continue monitoring the situation and take appropriate measures where necessary.
