The Government of Kenya is cutting its spending to bring down the budget gap. Treasury targets to reduce its budget deficit to 3.5% by 2023. The finance ministry plans to achieve this target through cuts on unnecessary spending such as extravagant travel allowances.
SEE ALSO: Kenya’s debt likely to reach Ksh6 trillion.
While the Kenyan government faces harsh criticism over mounting debt, the country’s budget deficit seems to shrink slowly. In 2018, the deficit stood at 6.7%, an improvement from 7.8% in 2017.
In a meeting to plan the next fiscal year, the Cabinet Secretary for National Treasury, Ukur Yatani, revealed the long term nature of the cuts. “The cuts will be brutal and sustained”, Mr Yattani added. The ministry targets lower spending on overseas trips and government advertising.
Ukur Yattani also mentioned the importance of proper use of state resources in cutting Kenya’s budget deficit. The minister vowed to limit the use of state vehicles and the number of government delegates in international meetings.
“The use of state vehicles and the size of government delegations for foreign meetings will also be limited to help the state make savings” added Mr. Yattani.
Finally, the CS highlighted the importance of proper capital expenditures to ensure both savings and the public good. In the meeting, Yattani urged the government to focus finances on existing projects as opposed to starting new ones.”…emphasis should be on projects nearing completion to ensure citizens benefit from such public investments,” he added.