Treasury Estimates Kenya’s FY23 Fiscal Deficit at Sh695.2 bn
The National Treasury plans to cut the budget deficit to 4.3% of GDP in the 2023–24 financial year from an estimated 5.8% in the current period.
In addition, it plans to cut a further 3.6% in the 2026–27 financial year period according to its Draft 2023 Budget Policy Statement themed “Economic Recovery Agenda to Promote Inclusive Growth.”
Treasury targets to grow tax revenues above 17.8% of GDP in the FY 2023/24 and above 18.0% of GDP over the medium term.
“As part of the economic turnaround plan, the Government will scale up revenue collection efforts by the Kenya Revenue Authority (KRA) to Ksh 3.0 trillion in the FY 2023/24 and Ksh 4.0 trillion over the medium term.”
“The fiscal policy stance over the medium term aims at supporting the economic recovery agenda of the Government through a growth friendly fiscal consolidation plan designed to slowing the annual growth in public debt and implementing an effective liability management strategy without compromising service delivery to citizens.”
As such fiscal deficit is projected to decline from 5.8% of GDP in FY 2022/23 to 4.3% of GDP in FY 2023/24.