Economic transformation programmes will absorb nearly two-thirds of the proposed Rwf7.8 trillion budget for the 2026/27 fiscal year as the government seeks to sustain growth, create jobs and strengthen resilience amid a challenging global environment. The Economic Transformation pillar has been allocated Rwf4.9 trillion, representing about 63 per cent of the proposed Rwf7.796 trillion budget, according to the draft finance bill presented to Parliament on June 11 by the Minister of Finance and Economic Planning, Yusuf Murangwa. ALSO READ: Experts push for jobs, energy security, and resilience in 2026/27 budget This makes it the largest spending pillar under the Second National Strategy for Transformation (NST2), ahead of Social Transformation, which will receive Rwf1.71 trillion, and Transformational Governance, allocated Rwf1.18 trillion. The proposed budget projects total resources of Rwf7.8 trillion, with domestic revenues expected to contribute Rwf5.27 trillion, or 68 per cent of total financing. External resources, including grants and loans, are projected at Rwf2.52 trillion. Presenting the budget to lawmakers, Murangwa said the spending plan reflects the government’s commitment to sustaining economic growth despite increasing global uncertainties, including the effects of the conflict in the Middle East. Under the Economic Transformation pillar, priority interventions will focus on accelerating inclusive growth across agriculture, industry and services while strengthening climate resilience and expanding economic opportunities. ALSO READ: Govt projects spending Rwf7.8 trillion in 2026/27 Agriculture remains a key priority. Planned investments include improving access to fertilisers, quality seeds and lime, expanding irrigation infrastructure, increasing strategic grain reserves, boosting coffee and tea production, and enhancing livestock productivity through animal health programmes. “Increasing agricultural productivity remains a priority in the 2026/27 budget,” Murangwa told Parliament. “The country will invest in irrigation, improved seeds, fertilisers and livestock health while strengthening grain reserves and supporting coffee and tea production to enhance food security, exports and rural incomes.” Energy and water infrastructure will also receive significant investment.Government plans include increasing electricity generation through projects such as the Nyabarongo II Hydropower Plant and KivuWatt, while expanding access to clean water and sanitation services in urban and rural areas. ALSO READ: Bigger economies set to pay more into EAC budget Transport infrastructure remains another major focus area. “To accelerate transport infrastructure projects, priority will be given to increasing the length of feeder roads, expanding the national paved road network, constructing a wider road to the new Kigali International Airport, and improving road junctions within Kigali City,” Murangwa said. Urban development efforts will continue through settlement expansion, housing projects and infrastructure linked to strategic national investments. This includes resettlement programmes for communities affected by major projects such as the Nyabarongo II hydropower scheme. The government will also continue expanding key public infrastructure, including the parliamentary complex. Private sector development and youth employment remain central to the economic agenda. Planned measures include expanding internship and apprenticeship programmes, strengthening coordination of job-creation initiatives, and improving the tracking of employment generated through public and private investments. Murangwa said the mining sector is expected to contribute more to economic growth through professionalisation and value-addition initiatives. Other priorities under the pillar include environmental protection, climate resilience, digital transformation, savings mobilisation and reforms aimed at strengthening the financial sector. Meanwhile, the Social Transformation pillar will receive Rwf1.71 trillion, accounting for nearly 22 per cent of the proposed budget. The funding will support programmes in healthcare, education, nutrition, social protection and disaster management. Key interventions include upgrading health facilities, strengthening the health workforce, expanding school feeding programmes, improving education infrastructure and supporting vulnerable households through targeted social protection schemes. According to Murangwa, the pillar aims to build a skilled and empowered population while improving access to essential services and raising living standards. The Transformational Governance pillar, which accounts for about 15 per cent of the budget, will focus on improving service delivery, strengthening public institutions, enhancing citizen participation, promoting justice and the rule of law, and sustaining peace and security. Murangwa said investments under the pillar would support accountability, institutional effectiveness, stronger international cooperation and improved public services. Parliament is expected to scrutinise the budget proposal before approving it ahead of the start of the 2026/27 fiscal year in July.
