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Treasury Cabinet Secretary (CS) Njuguna Ndung’u said the new budget will focus on tax-raising measures in the medium term. The government has embarked on the implementation of the National Tax Policy and the Medium-Term Revenue Strategy (MTRS). This will further strengthen tax revenue mobilization measures efforts to raise tax -GDP ratio to 20%.
The Treasury has set an ambitious target to cut borrowing for the budget beginning July 1 to a seven-year low of Sh703.9 billion. In new budget documents, the exchequer expects total financing for the next budget to come down from Sh785 billion in the current financial year, setting the lowest level of deficit financing since the 2017/18 financial year.
The plan to lower the fiscal balance rests on a higher revenue projection where the exchequer sees total revenues rising to Sh3.435 trillion from the current target of Sh3.07 trillion. The ambitious revenue collection target is backed by expectations to raise ordinary revenues to Sh2.948 trillion, from the current estimate of Sh2.624 trillion.
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Treasury Cabinet Secretary (CS) Njuguna Ndung’u said the new budget will focus on tax-raising measures in the medium term. The government has embarked on the implementation of the National Tax Policy and the Medium-Term Revenue Strategy (MTRS). This will further strengthen tax revenue mobilization measures efforts to raise tax -GDP ratio to 20%. In addition, tax administration measures by the Kenya Revenue Authority (KRA) will be strengthened by scaling up the use of technology to seal leakages, according to the finance ministry sources.
