NAIROBI, Sept 13 (NNN-AGENCIES) — Kenya plans “brutal” cuts to spending, including on government officials’ overseas trips, in an effort to rein in the fiscal deficit, its acting finance minister said.
The government in its annual budget in June set a target to bring the fiscal deficit down to 5.6% of gross domestic product for the 2019/20 financial year (July-June), from 7.7% in 2018/19.
Critics have accused President Uhuru Kenyatta’s government of ramping up borrowing at a rate that will saddle future generations with too much debt. The government has defended the borrowing, saying it is required to fund infrastructure.
Acting Finance Minister Ukur Yatani said all non-core expenditure will be reviewed to ensure the government can make savings and fund its programmes without relying too much on debt.
“The cuts will be brutal and sustained… because the success of this government will depend on our dignity as a country to be self-sufficient,” he told a public meeting to plan the budget for the next fiscal year.
Yatani’s predecessor, Henry Rotich, was criticised for increasing spending in June and unveiling additional tax measures on already squeezed taxpayers.
As well as runaway spending, Kenyatta’s government has been criticised for failing to stamp out widespread corruption as hundreds of billions of shillings in government funds are lost every year.
Rotich was removed as finance minister after he and other senior officials were charged over the misuse of funds for the construction of two dams. He has denied the charges and was freed on bail. — NNN-AGENCIES
