Cabinet approves budget statement for House debate
11 February 2016, 12:30
Nairobi - Members of the Cabinet have deliberated and approved for submission to the National Assembly this year's Budget Policy Statement.
President Uhuru Kenyatta Tuesday chaired a Special Cabinet Meeting at State House, Nairobi, where the statement prepared by the Cabinet Secretary for National Treasury was discussed.
"The purpose of the meeting was to consider and approve for submission to Parliament, the 2016 Budget Policy Statement, in accordance with Section 25 of the Public Finance Management Act, 2012," reads a press statement by Presidential Strategic Communications Unit (PSCU), in part.
"The theme and focus of the 2016 Budget Policy Statement is "sustaining prosperity in a volatile Global Economy," adds the statement sent to newsrooms by PSCU.
During the meeting the Cabinet noted the sluggish and volatile global economy that is likely to continue for a while, where recent forecasts have seen global growth rate decrease and an increase in the risks.
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It was agreed that because of the volatile global economic environment mentioned above, the Government must come up with fiscal framework that will ensure sustainable debt and improved expenditure management.
"The Government in particular plans to gradually lower the fiscal deficit – by closing the gap between revenue and expenditure – to below four per cent of GDP over the medium term while at the same time providing sufficient room to finance productive expenditure so as to sustain equitable growth," read the statement.
"In this respect, this fiscal framework presents revised expenditure ceilings to reflect the emerging realities of a very tight resource envelop that will be shared between the National Government and the Counties," it adds.
Expenditures it was agreed will be scrutinized carefully to ensure quality and alignment to the Government economic agenda. Spending on infrastructure, education, health and social safety net, and preparations for next year's elections remain a priority.
"Cabinet called upon all ministries, departments and agencies to desist from bursting their ceilings through additional resource requests considering the light funding scope for the budget," said the PSCU statement.
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