Kenya modifies spending and deficit projections in the supplementary budget for 2022–2023.
The Kenyan finance ministry has adjusted its budget deficit and spending projections for the current fiscal year, which ends in June, to reflect a little rise in overall spending but a smaller deficit.
The original budget given to parliament in April last year had 3.36 trillion shillings in total spending, but supplemental budget documents supplied to parliament showed that overall spending was estimated to be 3.37 trillion shillings ($26.98 billion).
The projected deficit for the 2022–2023 fiscal year has been reduced from 6.2% of GDP to 5.7% of GDP.
President William Ruto’s government is trying to cut the deficit after his predecessor, Uhuru Kenyatta, who oversaw a boom in building infrastructure, caused the public debt to grow by a lot.
Related: Kenya’s electric bike drive is helped by the ability to change batteries.
According to the supplemental budget, net foreign finance is projected to increase from the initial 2% seen in April 2022 to 2.7% of GDP. Instead of the original 4.2%, net domestic financing is now estimated to be 3% of GDP.
The supplementary budget still needs to be approved by lawmakers.
($1 equals 124.9000 shillings in Kenya)