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The government has proposed reducing the 2025/26 national budget by Rwf80.4 billion after reviewing economic performance and spending in the first half of the fiscal year.
Presenting the revised budget to Parliament, Finance Minister Yusuf Murangwa said the adjustment was based on developments in the economy and updated financing needs.
“The contents of this revised budget bill are based on an analysis of the economic situation and the implementation of this year’s budget during the past six months,” he told lawmakers.
The government proposes to reduce the budget from Rwf7,032.5 billion to Rwf6,952.1 billion.
“We request that the national budget, which had been approved at Rwf7,032.5 billion, be reduced to Rwf6,952.1 billion, meaning a decrease of about Rwf80.4 billion,” Murangwa said.
He explained that the reduction is largely due to changes in financing arrangements for the second phase of the new Kigali International Airport.
“The decrease in the budget is mainly due to changes made in the financing of the second phase of the new Kigali International Airport project,” he said.
Despite the overall reduction, the minister noted that external financing for development projects is expected to rise.
“External resources will increase by Rwf250.5 billion, mainly in the form of grants and loans for development projects,” he said.Murangwa also highlighted strong economic performance in 2025, with growth recorded across all major sectors.
He told legislators that the economy expanded by 6.5 per cent in the first quarter, 7.8 per cent in the second quarter, and 11.8 per cent in the third quarter, driven by services, industry, and agriculture.
Inflation, however, rose to 7.4 per cent in the fourth quarter of 2025, mainly due to increases in food, energy, and transport prices.
On budget execution, Murangwa said government revenues between July and September 2025 reached Rwf1,156.6 billion, nearly matching projections. He added that by December, about 65 per cent of the annual budget had already been spent, indicating steady implementation.
In closing, the minister urged lawmakers to support the revised budget, expressing confidence it would be fully implemented by the end of the fiscal year.
