Kenya will cut its budget deficit to 5.6 per cent of GDP in its 2019/20 (July-June) fiscal year from a revised 6.1 per cent of GDP in this fiscal year, according to its Treasury in a draft budget summary sent to parliament this week.
The country will borrow Ksh 324.3 billion, equivalent to 3.0 per cent of GDP, during the fiscal year and Ksh 289.2 billion, or 2.7 per cent of GDP, from the local market, the document showed.
The government aims to reduce the overall budget deficit to 3.8 per cent of GDP in the 2022/23 fiscal year as it has come under fire for ramping up its borrowing since 2013 to fund a range of infrastructure projects like roads.
The economy was likely to expand by 6.1 per cent this year, from 6.3 per cent last year, the Treasury said in the budget summary, attributing that benign forecast to stable economic fundamentals and the farming sector.