RUTO to borrow more from next year as he increases 2025/2026 budget by a whopping Sh325 billion

Tuesday, November 12, 2024 – President William Ruto’s government has increased the budget for 2025/2026.

According to the final Budget Review and Outlook Paper (BROP) 2024, next year’s budget is set to be Ksh4.329 trillion after the increase.

Next year’s budget is set to rise from this year’s budget of Ksh4.006 trillion. This represents an increase of Ksh326 billion.

In addition to the budget increase, development spending for 2025/2026 has risen by Ksh141.5 billion to Ksh804.7 billion, up from Ksh663.2 billion in the 2024/2025 fiscal year.

Recurrent spending for 2025/2026 has also increased by Ksh20.2 billion to Ksh3.077 trillion. This is from the previous year’s figure of Ksh3.057 trillion.

In terms of revenue, the total revenue plus appropriations-in-aid is set to be Ksh3.517 trillion. This is a rise from Ksh3.354 trillion this year.

Ordinary revenue for next year has been set for Ksh3.01 trillion a rise from Ksh2.91 trillion in this financial year.

Tax revenue for next year is set to be Ksh2.73 trillion, a rise from Ksh2.1 trillion in the previous financial year. Additional tax revenue for the next financial year is set to be Ksh343.0 billion which is set to be heavily influenced by the new proposed tax Bills by Treasury CS John Mbadi.

In regards to fiscal deficit, the next year's budget, the deficit is set to widen to Ksh759.4 billion. This is a sharp rise from Ksh597 billion in the previous financial year.

Kenya is also set to borrow more in the next financial year. The country is set to borrow Ksh973.1 billion in domestic and external borrowing combined in the next financial year. This represents an increase of Ksh204.5 billion from the previous year.

Kenya’s domestic borrowing is set to increase by Ksh346.3 billion and is set to be Ksh759.4 billion.

This is in contrast to Ksh413.1 billion borrowed in the 2024/2025 financial year.

The Kenyan DAILY POST