President William Ruto on Thursday revealed that the government is determined to drop the budget deficit by Ksh328 billion.
A dispatch from a Cabinet meeting the Head of State chaired at State House indicated that the budget was aimed at building on the progress Ruto's administration has achieved so far.
The Cabinet highlighted improved economic indicators such as inflation, the exchange rate, fiscal policy as well as monetary policy among others as a good pointer to stable growth of the economy.
The President, therefore, noted that efforts in the Budget to be presented by Treasury CS Njuguna Ndung'u on Thursday afternoon seek to reduce government borrowing.
"In line with the Administration's fiscal consolidation strategy, which seeks to reduce government borrowing, and in pursuit of the aspiration to achieve a balanced budget by 2027, the proposed budget consolidates these efforts by reducing the budget deficit by nearly 50%," read the dispatch in part.
"This is realized through the reduction of the deficit from Ksh1 trillion in FY 2021/22, Ksh925 billion in FY 2023/24 to Ksh597 billion in FY 2024/25."
The Cabinet further indicated that the budget policy was designed to accelerate the implementation programmes Ruto promised in his bottom-up agenda.
His areas of concern include universal health coverage, freedom from hunger, education, clean water, and sanitation.
As a result, the budget allocated additional resources to facilitate production and completion of ongoing infrastructure projects to boost export-led growth.
The Head of State noted that the measures the country is taking are necessary to transform the country even as a majority of Kenyans lament looming taxes that will increase the cost of living.
"The financial and economic management of the affairs of our country is our top agenda. The policies, legal and economic measures we are taking are the necessary foundation for the transformation of Kenya," he stated.
Experts, however, reckon that the significant goal of reducing the budget deficit may push the state to adjust either in the Appropriations Bill 2024 or the Finance Bill 2024.
The revenue for the Financial Year 2024 is forecasted at Ksh3.44 trillion.
