The Chamber of Deputies in Rwanda’s Parliament has approved a reduction of Rwf 80.4 billion in the national budget for the 2025–2026 fiscal year. The adjustment comes after a decrease in the projected funds needed for the construction of the new Kigali International Airport in Bugesera, as well as the postponement of a government payment related to RwandAir’s debt to the 2026–2027 fiscal year.

As a result, the revised national budget for 2025–2026 will drop from over Rwf 7,032 billion to Rwf 6,952 billion. The announcement was made on Thursday by the Minister of Finance and Economic Planning, Yusuf Murangwa, during a session before Parliament.

Minister Murangwa explained that more than Rwf 168 billion initially allocated for the Bugesera International Airport will no longer be required. The reduction is largely due to Rwanda securing more affordable financing options from alternative sources. Consequently, instead of increasing the previously approved budget, the government opted to scale it down.

“The budget for the airport construction has decreased, but the scope of the project itself has not been reduced,” Murangwa clarified. “Initially, we planned to raise funds through commercial financial institutions, where interest rates are typically high. We were considering borrowing about 400 million US dollars to invest in the airport. However, we continued exploring better financing options to avoid costly borrowing for our development projects.”

He noted that discussions with development partners—particularly the World Bank—proved fruitful. The World Bank agreed to provide a guarantee covering nearly 95 percent of the funds required for the airport project. This guarantee enables Rwanda to secure financing at significantly lower interest rates, over longer repayment periods, and to draw funds only when needed. “That is why the airport allocation in the national budget has been reduced,” he said.

In addition to the airport adjustment, the government also plans to streamline regular public expenditure. Ordinary spending is set to decrease from Rwf 4,312.9 billion to Rwf 4,114.9 billion—a reduction of nearly Rwf 198 billion.

Despite the overall budget cut, the government intends to borrow more than Rwf 331.8 billion from domestic sources. This plan prompted concerns from some lawmakers, who questioned whether increased government borrowing within the country might limit access to credit for private businesses.

Deputy Francine Tumushime raised the issue during the parliamentary session. While welcoming the financing strategy for the airport and the planned support to RwandAir through the state treasury, she asked whether domestic borrowing by the government could crowd out private sector access to loans.

Responding to her concerns, Minister Murangwa acknowledged the importance of domestic financing, noting that borrowing externally can sometimes lead to losses due to currency exchange fluctuations. 

However, he reassured Parliament that the planned domestic borrowing would not negatively affect private borrowers, as local banks currently have sufficient liquidity to meet both government and private sector demands.