Kenya to cut spending in 2021 financial year

NAIROBI — Kenya’s government plans to cut state spending in the financial year starting in July to 23,6 percent of gross domestic product (GDP) from 26,0 percent in the current fiscal year, the Finance Ministry said in its budget policy statement.
Belt-tightening measures will help the government meet its target to reduce the fiscal deficit for the period to 4,9 percent of GDP, down from 6,3 percent GDP for this fiscal year, the ministry said in the statement seen by Reuters on Tuesday.
“Revenues as a share of GDP are projected to remain at 18,4 percent in the medium term,” the ministry said.
The Treasury plans to borrow 222.9 billion shillings ($2,21 billion) locally to plug the budget gap and tap another 345,1 billion shillings from foreign sources, the statement added.
President Uhuru Kenyatta’s government has been criticised by voters for borrowing heavily since coming to power in 2013, and his administration was forced to raise its borrowing ceiling last year after breaching initial targets. — Reuters