The Government has adopted various prudent fiscal policies to enhance revenue collection to ease the widening budget deficits.
Treasury Cabinet Secretary Njuguna Ndung’u says the government plans to cut budget deficit to 3.3% of gross domestic product in the current financial year from 5.7% in fiscal year 2023/24.
This comes even as the Intergovernmental Authority on Development (IGAD) report shows that Kenya has the second-largest fiscal deficit in the region.
According to a recent report by the IGAD, Kenya registered a fiscal deficit of 6.3 percent in 2022, trailing South Sudan which recorded the highest deficit at 6.6 percent.
Uganda was ranked third with a budget deficit of 5.3 percent. The fiscal deficit, which represents the gap between a government’s revenue and its expenditure, highlights the ongoing economic challenges faced by the member states.
The report highlighted Kenya’s significant deficit which reflected the government’s increased spending on infrastructure and social programs, against a backdrop of economic recovery efforts post-pandemic and rising debt levels.
National Treasury cabinet secretary Njuguna Ndungu says the economic outlook remains positive due to effective policy implementation and regional stability.
IGAD is warning that South Sudan faces immense hurdles in achieving fiscal balance due to its reliance on oil revenue and ongoing political challenges.
Speaking at the launch ceremony, Deputy Executive Secretary of IGAD Mohamed Abdi Ware emphasised that the IGAD Statistics Yearbook will serve as a reliable regional data source that provides harmonised statistics across member states, enhancing regional integration, economic development, effective planning, and impactful programming.
“We are committed to ensuring the yearbook sustainability and continued improvement in future editions, ‘ IGAD Deputy Executive Secretary on development Mohamed Abdi Ware Said, even as he urged member states to align their priorities on the global stage.”
