MEMORANDUM TO THE FINANCE AND PLANNING COMMITTEE OF THE NATIONAL ASSEMBLY ON THE BUDGET ESTIMATES 2020/21 Public Debt and Budget Financing

This Memorandum was prepared as a submission to inform deliberations on the proposed Budget Estimates for the FY 2020/21 it highlights Public Debt and Budget Financing: Kenya has already been ranked at high risk of debt distress by IMF1 due to the impact of COVID-19 pandemic. The disease is worsening the existing vulnerabilities, specifically, the limited fiscal space occasioned by revenue shortfalls amid rising expenditure pressures. The country has consistently failed to meet its revenue targets due to unrealistic revenue projections. This has led to in-year borrowing and may also imply foregoing services equivalent to the amount of revenue that has not been met. Ordinary revenue is expected to decline in the FY 2020/21 due to the impact of the COVID-19 pandemic on economic activities and the tax measures being implemented to cushion Kenyans from the effects of the pandemic. Public Debt and Budget Financing


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