Rwanda: Jobs, Growth Get Lion's Share of 2026/27 Budget

Economic transformation programmes will absorb nearly two-thirds of the proposed Rwf7.8 trillion budget for the 2026/27 fiscal year as the government seeks to sustain growth, create jobs and strengthen resilience amid a challenging global environment.

The Economic Transformation pillar has been allocated Rwf4.9 trillion, representing about 63 per cent of the proposed Rwf7.796 trillion budget, according to the draft finance bill presented to Parliament on June 11 by the Minister of Finance and Economic Planning, Yusuf Murangwa.

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This makes it the largest spending pillar under the Second National Strategy for Transformation (NST2), ahead of Social Transformation, which will receive Rwf1.71 trillion, and Transformational Governance, allocated Rwf1.18 trillion.

The proposed budget projects total resources of Rwf7.8 trillion, with domestic revenues expected to contribute Rwf5.27 trillion, or 68 per cent of total financing. External resources, including grants and loans, are projected at Rwf2.52 trillion.

Presenting the budget to lawmakers, Murangwa said the spending plan reflects the government's commitment to sustaining economic growth despite increasing global uncertainties, including the effects of the conflict in the Middle East.

Under the Economic Transformation pillar, priority interventions will focus on accelerating inclusive growth across agriculture, industry and services while strengthening climate resilience and expanding economic opportunities.

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Agriculture remains a key priority. Planned investments include improving access to fertilisers, quality seeds and lime, expanding irrigation infrastructure, increasing strategic grain reserves, boosting coffee and tea production, and enhancing livestock productivity through animal health programmes.

"Increasing agricultural productivity remains a priority in the 2026/27 budget," Murangwa told Parliament. "The country will invest in irrigation, improved seeds, fertilisers and livestock health while strengthening grain reserves and supporting coffee and tea production to enhance food security, exports and rural incomes."

Energy and water infrastructure will also receive significant investment.Government plans include increasing electricity generation through projects such as the Nyabarongo II Hydropower Plant and KivuWatt, while expanding access to clean water and sanitation services in urban and rural areas.

"To accelerate transport infrastructure projec