Chris Kiptoo disclosed that the growth-friendly fiscal consolidation will be achieved through enhancing revenue collection…reports Asian Lite news
Kenya has announced plans to reduce its fiscal deficit in order to preserve the country’s debt sustainability.
Chris Kiptoo, Principal Secretary for the National Treasury and Economic Planning, told journalists on Wednesday in Nairobi, Kenya’s capital, that the government targets to reduce the fiscal deficit from 6.2 per cent of GDP at the end of the 2021/22 financial year which ended in June 2022 to 5.8 per cent in June 2023.
“This will lead to stability in growth of the public debt,” Kiptoo said during the public hearings for the financial year 2023/24 and the medium-term budget preparation.
He disclosed that the growth-friendly fiscal consolidation will be achieved through enhancing revenue collection and suspending expenditures in some recurrent areas such as domestic and foreign travels.
He revealed that the fiscal deficit is projected to decline further to 4.3 per cent of GDP in the 2023/24 financial year budget and 3.5 per cent of GDP over the medium term.