Thu, 02 Dec 2021

NAIROBI, Oct. 13 (Xinhua) -- Kenya plans to focus on boosting tax revenue in order to reduce the country's fiscal deficit, a senior government official said on Wednesday.

Ukur Yatani cabinet secretary, the National Treasury and Planning told a forum in Nairobi that the fiscal deficit is projected to decline from 7.4 percent in the current financial year to 5.7 percent in the next financial year.

"The increase in revenue collection will be underpinned by the ongoing reforms in tax and revenue administration as well as the implementation of the economic recovery strategy," Yatani said during the official opening of the public hearings of the 2022/23 financial year and the medium-term budget proposals.

He added that the budget deficit in the next financial year will be financed by net external financing of 2.7 percent of GDP and net domestic financing of 3.0 percent of GDP.

He added that going forward the continued growth in revenue collection will be catalyzed by increasing economic and business activities.

"We indeed remain committed to the fiscal consolidation path so as to reduce and stabilize growth in public debt," he noted.

The National Treasury said that it is also rationalizing government operating expenditure under a tight fiscal framework in order to contain the debt burden as well as corresponding debt servicing costs.

Yatani revealed that prior to the emergence of the COVID-19 pandemic in March 2020, the country's medium-term plan prioritized the nation's development blueprint as well as macroeconomic stability.

He noted that the government is also committed to upholding high-level fiscal discipline and prudent economic and financial management.

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