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