The Kenyan finance ministry has revised its estimated spending and the budget deficit for the current fiscal year ending in June, revealing a slight increase in total expenditure and a smaller deficit.
Supplementary budget documents submitted to parliament reveal that overall spending is projected to be KES 3.37 trillion ($26.98 billion), an increase from the KES 3.36 trillion initially presented in April last year.
Meanwhile, the deficit for the 2022/23 fiscal year is now estimated at 5.7% of the gross domestic product (GDP), a decrease from the original projection of 6.2%. President William Ruto’s administration is working to reduce the deficit, which grew significantly under his predecessor, Uhuru Kenyatta, due to an infrastructure construction drive.
The supplementary budget states that net foreign financing is expected to be 2.7% of GDP, compared to the original projection of 2% and net domestic funding is seen at 3% of GDP, compared to the initial estimate of 4.2%.
However, lawmakers have yet to approve the supplementary budget.
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