Kenya is targeting to cut its fiscal deficit from the current 6.3 percent of the gross domestic product (GDP) to 3 percent by 2023, the Treasury said on Tuesday.
The reduction of the deficit, according to the Treasury’s Budget Policy Statement for the 2020/21 fiscal year, would help maintain macroeconomic stability and support strong economic growth.
“We are cognizant of our limited fiscal space occasioned by revenue shortfalls and rising expenditure pressures. To reverse this situation, the government will continue to pursue the fiscal consolidation policy to provide and maintain the necessary balance between revenues and expenditures,” says Treasury cabinet secretary Ukur Yatani in the report.
Yatani notes the overall goal is to ensure that the fiscal deficit is kept under control and to a bare minimum to reduce the pace of growth of the public debt. Enditem