Kenya cut the budget deficit on Thursday as it lavished on infrastructure projects and stimulus efforts to boost economic growth amid coronavirus.
Finance Minister Ukur Yatani said he expects the country’s economy to expand by 6.6% in 2021. Yatani added that growth fell to 0.6% last year, as key sectors such as tourism and services collapsed during the outbreak of the crises.
Meantime, a 7.5% of GDP, and a deficit of above 3% has been criticized by parliament’s government-controlled budget committee.
Recovery has begun this year, but the pace may slow down due to a lack of COVID-19 vaccines and an increase in cases, said a Nairobi based analyst. “We are trying to finance a budget with tax revenue that does not exist,” he told Reuters.
Yatani has boosted spending on infrastructure projects, and earmarked money for an economic program that provides manual labor for thousands of unemployed to maintain growth.
More programmes has been earmarked for a range of iconic projects has started “The Big 4 Agenda” before next year’s elections.