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HomeBusinessEconomyKenya’s fiscal deficit to go down 5.7% in FY 2022/23

Kenya’s fiscal deficit to go down 5.7% in FY 2022/23

National Treasury to release Ksh.39 billion to counties

The National Treasury has revealed that the country’s fiscal deficit is projected to decline from 7.4 percent in the current financial year to 5.7 percent in the 2022/23 financial year.

This was revealed by Treasury Cabinet Secretary Ukur Yatani when the Ministry officially launched the Public Sector Hearings for the 2022/2023 financial year and medium-term budget proposals.

According to Yatani, the deficit will be financed by net external financing of 2.7 percent of Gross Domestic Product (GDP) and net domestic financing of 3 percent of GDP.

This even as the Yatani said that revenue collection in 2022/23 FY is projected at 17.5 percent of GDP a figure that the Ministry is attributing to the performance of the ongoing tax reforms, reopening of the economy and increased demands for commodities and services.

The three-day public participation exercise seeks to gather comments and opinions from various stakeholders as the Ministry fast tracks the budget-making process in time before the dissolution of Parliament ahead of next years’ general election.

More to follow…

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