The ambitious spending plan, unveiled on Thursday, June 12, by Minister of Finance and Economic Planning Yusuf Murangwa, reflects a strong commitment to strategic investments aimed at accelerating economic transformation and enhancing national resilience.

Presenting the budget to Parliament, Minister Murangwa stressed the importance of aligning fiscal priorities with Rwanda’s National Strategy for Transformation (NST-2), citing the need for sustained infrastructure development, enhanced service delivery, and inclusive economic growth.

“The Government is prioritizing spending to support investments that will help us achieve our NST-2 goals," said Minister Murangwa. .

"We are also working to manage public finances carefully to reduce our budget deficit, stabilise debt, and make our economy more resilient to external shocks. At the same time, we want to improve household incomes and spending.”

The lion’s share of the budget, Frw 4.42 trillion (62.8%), has been allocated to economic transformation. Key investments include the construction of the New Kigali International Airport, expansion of access to electricity and clean water, modernisation of the transport network, and support for urban and rural settlement development.

The government is also focused on stimulating local manufacturing and exports to reduce the trade deficit, boosting the financial sector, promoting job creation, and strengthening climate resilience.

The social transformation pillar will receive Frw 1.53 trillion (21.7%) to improve healthcare and education services, strengthen social protection programmes, support family and gender promotion, and enhance disaster preparedness and nutrition services.

A total of Frw 1.09 trillion (15.5%) is earmarked for transformational governance. This funding will support service delivery improvements, public financial management, justice system reforms, and peace and security efforts, while also bolstering Rwanda’s economic diplomacy.

Budget financing

The Frw 7.03 trillion budget will be financed through a mix of domestic and external sources.

Domestic revenues are projected at Frw 4.11 trillion, consisting of Frw 3.63 trillion in tax revenue and Frw 477.2 billion from other sources. External grants are estimated at Frw 585.2 billion, while loans, largely concessional, will contribute Frw 2.15 trillion.

Of the total expenditure, Frw 4.35 trillion will go toward recurrent spending, while Frw 2.68 trillion is allocated for capital investments, including equity funding and policy lending.

Rwanda’s budget announcement coincides with similar fiscal year presentations across East African Community (EAC) member states, all delivered under the shared theme: “Inclusive economic transformation through domestic resource mobilisation and resilient strategic Investment for job creation and improved livelihoods.”

The ambitious spending plan, unveiled on Thursday, June 12, by Minister of Finance and Economic Planning Yusuf Murangwa, reflects a strong commitment to strategic investments aimed at accelerating economic transformation and enhancing national resilience.

Presenting the budget to Parliament, Minister Murangwa stressed the importance of aligning fiscal priorities with Rwanda’s National Strategy for Transformation (NST-2).