Minister Murangwa explained that the reduction results from adjustments in financing arrangements for major national projects, particularly the New Kigali International Airport.

He noted that securing more affordable funding and improving cash-flow management reduced the need for previously planned borrowing.

He emphasized that the revision reflects prudent fiscal management aimed at strengthening the country’s economic position while safeguarding essential public spending.

On the revenue side, projected tax and other revenues have been revised upward by Frw 41 billion, signaling confidence in Rwanda’s economic growth. Planned budget loans were also reduced after the government secured more favorable concessional and domestic financing.

The recurrent budget was revised downward by Frw 198 billion to Frw 4,114.9 billion, reflecting changes in public debt profiles, subsidies, and spending on goods and services.

Meanwhile, development spending increased by Frw 253.2 billion to Frw 2,115.8 billion to sustain progress on infrastructure and priority national projects.

Road construction progress

Minister Murangwa also updated lawmakers on the status of key asphalt road projects:

• Ngoma–Ramiro road (53 km): 70% complete
• Base–Butaro–Kidaho road: 56% complete
• Nyagatare–Rwempasha road (18 km): 70% complete

Between January and December 2025, Rwanda’s trade deficit narrowed by 8.4%, declining from $3 billion to $2.7 billion compared to the same period in 2024.

This improvement was driven by strong export performance, including coffee exports rising by 56.7%, minerals by 46.2%, and other exports by 21.5%. Imports, meanwhile, fell by 13.8% in value, even though their volume increased by 13%.

The government said it will continue monitoring economic performance to ensure effective budget implementation and maintain macroeconomic stability.