Treasury discloses revenue, target shortfalls
22 May 2014, 10:11
Nairobi - The National Treasury has announced that the country has recorded a decrease in deficit and did not meet its targets in revenue collection in the third quarter of the financial year 2013/14.
This is according to the just-released quarterly economic and budgetary review report which reported that the deficit represents a decrease in deficit as compared to the same period in the last financial year.
The same period in the 2012/13 financial year reported a deficit of KES 228.8 billion which represents 6.3 percent of the gross domestic product.
This year’s deficit is equivalent to 4.1 percent of GDP.
The information is contained in the third quarterly economic and budgetary review report which is published in accordance with Section 83 of the Public Finance Management Act of 2012.
The report also highlights the recent economic developments in the country.
“The economy grew by 4.7 percent in 2013 compared with 4.6 percent in 2012,” stated the report.
The report further states that this growth was broad-based and was driven by expansion in wholesale and retail trade and repairs, mining, financial intermediation and transport and communication.
“Growth in the four quarters of 2013 were 5.7 percent in quarter one, 4.7 percent in quarter two, 4.6 percent in quarter three and 3.9 percent in quarter four,” said the report.
In revenue collection, the report states that the national government collections amounted to KES 674.1 billion (an equivalent of 16.2 per cent of GDP) at the end of the third quarter of FY 2013/2014.
The report states that this was an under-performance since the target was Sh 726.5 billion or 17.4 per cent of GDP.
“This represented an underperformance of KES 52.4 billion. The ordinary revenues accounted for KES 20.7 billion of this shortfall,” states the report.
– CAJ News
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