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Kenya plans to almost halve its budget deficit in the next four years as the government implements measures to boost revenue amid pressure to fund the president’s ambitious “Big Four” development agenda.
The budget gap will shrink to 3,3 percent of gross domestic product in 2024 from an estimated 6,3 percent in the fiscal year ending in June, according to a document on the National Treasury’s website.
The shortfall for the year starting July is seen at 4,9 percent of GDP.
Kenya is struggling to fund President Uhuru Kenyatta’s agenda to boost manufacturing, housing, farming and health care while keeping debt levels sustainable.
In November, the International Monetary Fund managing director Kristalina Georgieva said the government should be cautious in piling debt after it amended its borrowing ceiling to allow more loans.
Authorities in the East African nation plan to improve efficiency in tax administration and increase collections that could amount to 1,8 trillion shillings ($17,8 billion) in 2020-21 compared with an earlier forecast of 1,7 trillion shillings.
The government will continue with plans to keep the fiscal deficit under control, Treasury Secretary Ukur Yatani said in the document. — Moneyweb.
Online Reporter