By Ronald Njoroge NAIROBI (Xinhua) --
Kenya’s budget for the 2018/2019 financial year
is expected to hit 29 billion U.S. dollars, up from the 26
billion dollars for the current financial year, officials said
in the National Treasury Kamau Thugge told participants in a
budget forum in Nairobi that approximately 19 billion dollars
will be raised through taxes and government fees.
“The rest will be
raised from domestic and external borrowing, including
concessional loans from bilateral and multilateral partners,”
Thugge said during the launch of the Sector Working Groups for
the Preparation of the 2018/2019 financial year.
Thugge said that out
of the total resource envelope of 29 billion dollars only 2.95
billion dollars will be available for discretionary spending.
The bulk of the
budget will cater for the public wage bill as well as interest
payments on domestic and foreign debt.
According to Thugge,
next year’s budget will focus on funding projects that will
support strategic investments aimed at promoting economic growth
and job creation.
Thugge said that the
budget deficit for the 2018/2019 financial year is expected to
decline to less than 6 percent as part of measures to maintain
overall macroeconomic stability.
official noted that the government is committed to reducing the
fiscal deficit in order to maintain public debt levels
“The net present
value of public debt as a ratio of gross domestic product (GDP)
as of the end of 2016 stood at 47.8 percent,” he said, adding it
remains below the debt sustainability threshold level,
established by Bretton Woods institutions, of 75 percent of GDP.