Revised Rwanda Budget 2025/2026: Key Changes
On 12 February 2026, the Minister of Finance and Economic Planning, Yusuf Murangwa, announced that Rwanda’s total budget for the 2025/2026 fiscal year was revised downward from Rwf 7,032.5 billion to Rwf 6,952.1 billion.
The reduction is mainly linked to changes in the financing structure of the second phase of the Kigali International Airport project, which led to a Rwf 168.2 billion cut in allocations for that fiscal year.
Additionally, the government adjusted the repayment schedule for loans taken by RwandAir, with repayments now set to begin gradually in the 2026/2027 fiscal year, easing pressure on the current budget.
Senate Endorses Budget Aligned with NST2
On 18 February 2026, the Senate plenary confirmed that the revised draft budget was well-prepared and aligned with the pillars of the National Strategy for Transformation 2 (NST2).
Increased Funding for Social Welfare and Governance
Under the revised budget:
- Social transformation funding increased from Rwf 1,526.9 billion to Rwf 1,641.8 billion, accounting for 23.6% of the total budget.
- Governance and justice programs rose from Rwf 1,088.3 billion to Rwf 1,105.1 billion, representing 15.9% of overall expenditure.
Economic Transformation Allocation Adjusted
Funding for economic transformation programs was reduced from Rwf 4,417.2 billion to Rwf 4,205.1 billion, equivalent to 60.5% of the total budget.
Despite this adjustment, the development budget increased by Rwf 117.5 billion, rising from Rwf 2,719.7 billion to Rwf 2,837.2 billion, reinforcing Rwanda’s commitment to long-term growth.
Development Projects and Revenue Outlook
Allocations for development projects increased significantly by Rwf 253.3 billion, from Rwf 1,862.5 billion to Rwf 2,115.8 billion, supporting infrastructure, social services, and priority investments.
Rwanda also expects stronger domestic revenue collection, with tax and non-tax revenues projected to rise by Rwf 41 billion, from Rwf 4,105.2 billion to Rwf 4,146.2 billion.
Chairperson of the Senate Committee on Economic Development, Fulgence Nsengiyumva, said the increase demonstrates growing taxpayer compliance and strengthens Rwanda’s drive toward economic self-reliance.
Domestic Borrowing Increases, External Loans Reduced
Domestic borrowing is projected to nearly triple, rising from Rwf 136.6 billion to Rwf 468.4 billion. Minister Murangwa noted that borrowing locally helps secure affordable financing, supports domestic banks, and minimizes foreign exchange risks.
Meanwhile, external borrowing will be reduced by Rwf 512.1 billion, while grants are expected to increase by Rwf 64.4 billion, reaching Rwf 649.6 billion.
Overall, taxes, non-tax revenues, and borrowing will account for 90% of the national budget, compared to 91% in the initially approved framework highlighting Rwanda’s steady progress toward fiscal independence.
What Happens Next?
The Senate’s recommendations will be submitted to the Chamber of Deputies of Rwanda, where the Parliamentary Committee on Budget and State Assets will conduct a detailed article-by-article review before final approval.
The government also confirmed that by December 2025, 65% of the 2024/2025 budget approved in June 2025 had already been executed, signaling strong budget implementation capacity.