Kenya’s Finance Minister Ukur Yatani presented July 2022 to June 2023 spending proposals to parliament on Thursday. The government plans to spend an estimated KSh3.31 trillion budget.
Themed “accelerating economic recovery for improved livelihoods”, the budget estimates aims to help citizens recover from the negative impact of the coronavirus pandemic.
Encouraged by better-than-expected growth in 2021, Yatani expressed confidence that the economy would expand by 6 per cent in 2022 from an estimated 7.6 per cent in 2021, and the fiscal and current account deficits would remain within limits at 5.9 per cent of the Gross Domestic Product.
According to the CS, following the easing of COVID restrictions, reopening of the economy, and targeted stimulus intervention by the government, the economy registered a strong recovery of 9.9 per cent in the third quarter of 2021. Overall the economy is estimated to have expanded by 7.6 per cent in 2021.
“We plan to reduce the level of fiscal deficit from 8.7 per cent of GDP in the current budget to 7.5 per cent of GDP in the financial year 2021/22 and further to a 3.6 per cent of GDP in the financial year 2024/25.”
|Draft Budget Estimates FY’2022/23 (Kshs billions)|
|Item||FY’2021/22 Approved Budget||FY’2022/23 Estimates||Change y/y (%)|
|Total revenue & grants||2,100.6||2,480.3||18.1%|
|Development expenditure & Net Lending||667.7||715.5||7.2%|
|County Transfer & Contingencies||414.9||370.0||(10.8%)|
|Projected Deficit as % of GDP||8.1%||6.2%||(1.9%) pts|
|Net foreign borrowing||334.0||280.7||(16.0%)|
|Net domestic borrowing||661.6||581.7||(12.1%)|
Source: Exchequer Feb 2022 issue and FY’2022/23 Budget Statement, National Treasury of Kenya