Monday, February 19, 2024 – The Government of President William Ruto has announced plans to raise Ksh700 billion from loans borrowed both domestically and internationally, to cover the budget deficits expected in the 2024/25 financial year.
Ksh326.1 billion will be raised from external financing, while the other share of Ksh377.7 billion will be through domestic borrowing.
The Treasury Ministry in its budget policy statement stated the government plans to cut its budget deficit for the 2024/25 accounting year while also trying to preserve growth-supporting expenditure.
"The government will continue with the growth-friendly fiscal consolidation plan by containing expenditures and enhancing the mobilisation of revenues to slow down growth in public debt without compromising service delivery," read part of the budget policy statement.
According to the Treasury, the nation’s 2024/2025 budget is set to rise to an estimated Ksh4.19 trillion (USD28.90 billion) from the previous Ksh3.90 trillion.
It also noted that the economy is projected to expand at 5.5 per cent this year, as stated in its previous forecast.
The deficit, according to the Treasury, will narrow to 3.9 per cent of Gross Domestic Product (GDP) from 4.9 per cent in this financial year.
County allocation has been set for Ksh445.84 billion up from Ksh424.93 billion in 2023/24.
Parliament has until February 28 to approve the budget policy statement with the consolidation of draft budget estimates expected to be done by April 12.
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