Treasury Borrowing Kenya: The National Treasury is expected to borrow Sh. 1 trillion in the current financial year ending on June 30, 2021. This follows an upward adjustment to spending.
According to a report that appeared on Citizen, the higher borrowing ceiling has been cited as part of Supplementary 1 budget estimates that will be presented next month to Parliament.
“According to the supplementary estimates revealed in the draft 2020 Budget Policy Statement (BPS) government spending will rise by Sh. 103.4 billion to Sh. 2.88 trillion from an originally approved Sh. 2.77 trillion. This will include a Sh. 21.5 billion upward adjustment to recurrent expenditures which will now rise to Sh. 1.85 trillion and a Sh. 52.2 billion rise in development spending to Sh. 641.9 billion,” the report said.
It added that the upward adjustment in borrowing is attributable to declining revenues with the exchequer having adjusted targets on expected collections to Sh. 1.829 trillion to include Sh. 1.574 trillion in ordinary revenues and Sh. 255.2 billion in ministry appropriations.
“So far, the National Treasury has Sh. 362.6 billion to include Sh. 345.4 billion in net domestic borrowing and Sh. 17.2 billion in net foreign financing. This implies that Kenya will now take up Sh. 637.4 billion in new borrowing between now and June to plug the budget hole,” the report said. Treasury Borrowing Kenya.