Rwanda plans to increase public spending by 21% in the upcoming 2025/26 fiscal year, bringing the national budget to Frw 7,032.5 billion.
The announcement was made by Minister of Finance and Economic Planning, Yusuf Murangwa, who presented the government’s Budget Framework Paper (BFP) on May 8.
The document outlines Rwanda’s macroeconomic and fiscal priorities through to 2027/28.
This expanded budget reflects a deliberate push to sustain high growth, build economic resilience, and drive long-term transformation.
It comes on the back of an impressive economic performance in 2024, during which Rwanda recorded a growth rate of 8.9%, surpassing the earlier forecast of 8.3%.
Growth was largely driven by robust activity in the services and industry sectors, as well as improved food crop production.
“Our economy has shown resilience in the face of global shocks, and this budget reflects our commitment to inclusive development,” said Minister Murangwa. “The government will continue to invest in key sectors such as agriculture, manufacturing, healthcare, social protection, and education.”
Strategic Spending and Development Focus
The increased allocation will support major national projects, most notably the New Kigali International Airport in Bugesera and the expansion of RwandAir. These initiatives are expected to enhance regional connectivity and position Rwanda as a hub for trade and tourism.
Additionally, the budget prioritizes key areas under the National Strategy for Transformation (NST2), including:
• Accelerating industrialization, with a focus on manufacturing
• Promoting private investment, job creation, and boosting exports
• Investing in ICT and innovation to improve service delivery
• Expanding access to electricity, water, sanitation, and housing
• Scaling up support for education, health care, gender equality, and nutrition
• Strengthening infrastructure, financial inclusion, and environmental resilience
Financing the Budget
The 2025/26 budget will be financed through a combination of domestic and external resources. The government expects to mobilize Frw 4,105.2 billion in domestic revenues, including Frw 3,628.0 billion in tax collections. External grants are projected at Frw 585.2 billion, while loans will account for Frw 2,151.9 billion.
On the spending side, Frw 4,395.1 billion will go to recurrent expenditures such as salaries, while Frw 2,637.4 billion is earmarked for capital investment.
Laying the Groundwork for June Budget Presentation
The Budget Framework Paper, guided by Vision 2050 and NST2 objectives, sets the tone for the full national budget, which is scheduled to be presented to Parliament in June.
As Rwanda continues to navigate a complex global economic environment, the government says its focus remains on building a stable, inclusive, and future-ready economy.