Monday, February 19, 2024 – The Government of President William Ruto has announced plans to raise Ksh700 billion from loans borrowed both domestically and internationally, to cover the budget deficits expected in the 2024/25 financial year.
Ksh326.1 billion will be raised
from external financing, while the other share of Ksh377.7 billion will be
through domestic borrowing.
The Treasury Ministry in its
budget policy statement stated the government plans to cut its budget deficit
for the 2024/25 accounting year while also trying to preserve growth-supporting
expenditure.
"The government will
continue with the growth-friendly fiscal consolidation plan by containing
expenditures and enhancing the mobilisation of revenues to slow down growth in
public debt without compromising service delivery," read part of the
budget policy statement.
According to the Treasury, the
nation’s 2024/2025 budget is set to rise to an estimated Ksh4.19
trillion (USD28.90 billion) from the previous Ksh3.90 trillion.
It also noted that the economy
is projected to expand at 5.5 per cent this year, as stated in its previous
forecast.
The deficit, according to the
Treasury, will narrow to 3.9 per cent of Gross Domestic Product (GDP) from 4.9
per cent in this financial year.
County
allocation has been set for Ksh445.84 billion up from Ksh424.93 billion in
2023/24.
Parliament has until February 28
to approve the budget policy statement with the consolidation of draft budget
estimates expected to be done by April 12.
The Kenyan DAILY POST
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