© Reuters. FILE PHOTO: A user makes a mobile money transfer, known as M-Pesa, at a Safaricom agent booth, while holding Kenyan shillings (KSh) in Nairobi, Kenya October 16, 2018. REUTERS/Thomas Mukoya/File Photo
NAIROBI (Reuters) – Kenya’s finance ministry revised up its spending and budget deficit estimates for the current fiscal year ending in June to show a slight increase in total spending but a smaller deficit.
Supplementary budget documents submitted to parliament show that total spending is projected at 3.37 trillion shillings ($26.98 billion), up from 3.36 trillion shillings contained in the original budget presented to parliament in April last year.
Deficit for the fiscal year 2022/23. it is now estimated at 5.7% of gross domestic product (GDP), compared to the original 6.2%.
President William Ruto’s administration is trying to rein in the deficit after public debt soared under his predecessor, Uhuru Kenyatta, who oversaw infrastructure construction.
The budget rebalance states that net foreign financing is expected to be 2.7% of GDP from the original 2% in April 2022. Net domestic financing is expected to be 3% of GDP compared to the original 4.2 %.
Deputies have yet to approve the rebalancing of the budget.
($1 = 124.9000 Kenyan shillings)