Kigali, 12 June 2025 – The Minister of Finance and Economic Planning, Yusuf Murangwa today unveiled the budget proposal of Frw 7,032.5 billion for the upcoming fiscal year 2025/2026. The proposed budget is 21% higher than the Frw 5,816.4 billion approved in the 2024/25 revised budget.

The increase in spending indicates Government’s commitment to investing in strategic projects such as the New Kigali International Airport. It also underscores Government’s willingness to fund key development priorities such as boosting agricultural productivity, expanding electricity access, improving access to clean water and sanitation, strengthening the transport system, and upgrading education and healthcare, among other key sectors.

Speaking to Parliament, Minister Murangwa said: “The Government is prioritizing spending to support investments that will help us achieve our NST-2 goals. We are also working to manage public finances carefully to reduce our budget deficit, stabilize debt, and make our economy more resilient to external shocks. At the same time, we want to improve household incomes and spending.”

Key highlights of the 2025/2026 budget:

Total estimated resources for the fiscal year 2025/26 are projected at Frw 7,032.5 billion.  This amount comprises of domestic revenues amounting to Frw 4,105.2 billion comprising of Frw 3,628.0 billion from tax revenue and Frw 477.2 billion from other revenue collection. External grants are estimated at Frw 585.2 billion whilst external loans are projected at  Frw 2,151.9 billion 

Total expenditure for fiscal year 2025/26 is equally projected at Frw 7,032.5 billion. This includes recurrent spending of Frw 4,352.9 billion, capital spending of Frw 2,679.5 billion and this includes equity, investment fund shares and policy lending.

Budget allocations in alignment with NST-2

           Economic transformation: (62.8%) — Frw 4,417.2 billion

These resources will be allocated to accelerate inclusive growth in agriculture, improve access to electricity, water, and sanitation, strengthen the transport system, and promote urbanization and rural settlement development. Additionally, funding will be used to enhance climate resilience, boost local manufacturing and exports to reduce the trade deficit, develop a vibrant financial sector, and create sustainable and decent jobs.

           Social transformation (21.7%) — Frw 1,526.9 billion

This funding will focus on improving quality of healthcare and education, enhancing  social protection programs , promoting sustainable nutrition services, family and gender promotion as well as enhancing sustainable disaster management programs.

            Transformational governance (15.5%) — Frw 1,088.4 billion

The allocation will target quality service delivery, good governance and transformational leadership, public finance management, justice system strengthening, peace and security maintenance, crime prevention, and the reinforcement of economic diplomacy.

The EAC 2025/26 fiscal year budgets will be presented today under the common theme “Inclusive economic transformation through domestic resource mobilization and resilient strategic Investment for job creation and improved livelihoods”