The assurance was given by the Minister of Finance and Economic Planning, Yusuf Murangwa, on Thursday, June 11, 2026, while presenting the 2026/27 Draft State Budget Law to members of Parliament and the Senate.
The proposed budget, which has already been approved by the Chamber of Deputies, amounts to Rwf 7.796 trillion, representing an increase of Rwf 844 billion compared to the 2025/26 fiscal year.
According to Minister Murangwa, domestic revenues are projected to reach Rwf 5.274 trillion, while foreign grants are expected to contribute Rwf 548.3 billion and external loans Rwf 974.1 billion.
He noted that domestic revenues combined with external borrowing will account for nearly 93 percent of the national budget, highlighting Rwanda’s continued efforts to reduce dependence on foreign aid.
Concerns over global economic pressures
During discussions following the budget presentation, Senator Dr. Frank Habineza raised concerns about the potential economic impact of the ongoing conflict between Israel and Iran, warning that it could further disrupt global markets, particularly fuel prices.
Habineza pointed out that key economic indicators have changed since the preliminary budget framework was unveiled in May 2026. Among the developments is the National Bank of Rwanda’s decision to increase its key policy rate by one percentage point.
He also highlighted the sharp increase in diesel prices, noting that the cost of a litre of diesel has risen from Rwf 2,205 to Rwf 2,927, an increase of Rwf 722. According to the senator, rising fuel costs have far-reaching implications for transportation, food prices, construction materials, and other essential services used by citizens on a daily basis.
Additionally, he expressed concern that higher interest rates could make loans more expensive, posing challenges for young entrepreneurs seeking financing for innovative business ventures.
Government prioritizes agriculture to protect food supply
Responding to the concerns, Minister Murangwa said the government has already put in place measures to cushion the economy from international price shocks, with a particular focus on strengthening agricultural production.
“The government will continue prioritizing agricultural output so that, regardless of external challenges, Rwanda will not face food shortages,” Murangwa said.
He explained that substantial resources have been allocated to the agriculture sector, particularly for fertilizer subsidies aimed at increasing crop yields and ensuring sustainable food production.
“In the previous fiscal year, the government allocated Rwf 39 billion for fertilizer support. Under the new budget, that amount has increased to nearly Rwf 64 billion, almost doubling the investment,” he stated.
The minister attributed the increase largely to rising fertilizer prices on the international market, driven by ongoing geopolitical tensions and conflicts in the Middle East.
Continued support to mitigate fuel price increases
Minister Murangwa further noted that the government will maintain subsidies in the energy sector to reduce the burden of increasing petroleum product prices on citizens.
He emphasized that public transport operators remain among the beneficiaries of these interventions, which are intended to prevent sharp increases in transport fares and the cost of goods and services.
The government’s strategy, he said, seeks to protect household purchasing power while maintaining economic stability amid a challenging global environment.
Following parliamentary approval, the draft budget law is expected to undergo further scrutiny by the parliamentary committee responsible for national budget and state property, while senators will continue providing their input before final adoption.
The 2026/27 budget reflects Rwanda’s broader commitment to strengthening economic resilience, enhancing food security, and reducing vulnerability to external shocks as the country pursues its long-term development goals.
