Rwanda’s 2026/2027 National Budget Rises by 12% Amid Global Economic Uncertainty

The new fiscal year, which begins in July 2026, will rely heavily on domestic revenues estimated at Rwf 5.273 trillion. Of this amount, Rwf 4.429 trillion is expected to come from taxes, while Rwf 582.4 billion will be generated from non-tax revenues.

Foreign grants are projected at Rwf 548.3 billion, while external loans are expected to reach Rwf 1.974 trillion.

According to the budget framework, Rwf 4.788 trillion will be allocated to recurrent expenditure, including government operations and public sector salaries. Meanwhile, Rwf 3.010 trillion has been earmarked for development projects and public investment.

Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, stated that the budget was prepared with consideration for the economic impact of ongoing tensions in the Middle East, particularly the conflict involving Iran, as well as broader fiscal management priorities.

He emphasized that the government will continue investing heavily in agriculture, especially in fertilizer subsidies, irrigation, and support for the national carrier, RwandAir.

Murangwa explained that one of the government’s key priorities is ensuring that farmers continue to access affordable fertilizers despite rising global prices linked to instability in the Middle East.

He noted that government funding for fertilizer subsidies has increased significantly, rising from Rwf 39 billion in the previous fiscal year to nearly Rwf 64 billion in the new budget proposal.

“Government has substantially increased funding for agriculture support programs,” Murangwa said. “We are aware that international fertilizer prices have risen because of the conflict in the Middle East. The increased budget allocation is intended to ensure fertilizers remain accessible and that food production in the country is not disrupted.”

Analysts say the increased agricultural spending reflects Rwanda’s broader strategy to safeguard food security and cushion citizens from the effects of global economic shocks.