The decision was made during a Cabinet meeting chaired by Prime Minister Dr. Édouard Ngirente at Urugwiro Village on Monday, June 9, 2025.
The expanded budget aims to finance strategic investments and development priorities under Rwanda's National Strategy for Transformation (NST2) and Vision 2050.
The projects include the ongoing construction of the New Kigali International Airport in Bugesera, expansion of RwandAir, job creation initiatives, boosting agricultural productivity, industrialisation, access to clean water and electricity, decent housing, and improvements in healthcare and transportation systems.
In a briefing held last month, Minister of Finance and Economic Planning Yusuf Murangwa highlighted that the increase reflects the government's focus on post-crisis recovery efforts, including those related to the COVID-19 pandemic, the May 2023 floods, and the Marburg virus outbreak.
The 2025/26 budget will be financed through a combination of domestic revenues and external resources.
The government projects to raise Frw 4.1 trillion locallyâ€"Frw 3.63 trillion from tax revenues and Frw 477.2 billion from other sources. External financing will include Frw 585.2 billion in grants and Frw 2.15 trillion in loans.
Recurrent spending is estimated at Frw 4.39 trillion, while Frw 2.64 trillion will go towards capital investments intended to drive long-term development.
The full budget is expected to be tabled before Parliament later this month for further scrutiny and approval.
Meanwhile, during the Monday meeting, the Cabinet also endorsed key education reforms aimed at improving learning outcomes in public and government-aided schools.
The reforms, spearheaded by the Ministry of Education, include the optimisation of instructional time within the double-shift system for lower primary learners. This is designed to ensure that all pupils receive consistent and adequate teaching hours, regardless of their shift.
Additionally, the government will introduce flexible learning pathways at upper levels, enabling students to choose between Mathematics & Sciences, Arts & Humanities, or Languages. These tracks will offer a mix of core and optional subjects to better align with learners' strengths, interests, and career goals.
"These reforms are designed to create a more inclusive, equitable, and future-ready education system," the Office of the Prime Minister said.
Wycliffe Nyamasege
