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The accumulated budget deficit in 12 months up to June was reduced for the fourth consecutive month and reached 2.2% of GDP, down 0.1 percentage point of GDP from the deficit recorded in the month previous, said the Central Reserve Bank (BCR).
This lower deficit was due to the increase in general government current revenue from 18.8% to 18.9% of GDP, mainly because of tax revenues. General government non-financial expenditures increased from 19.9% to 20% of GDP, especially capital expenditure.
In June, the nonfinancial public sector recorded an economic deficit of 1 056 million shillings in June, down 698 million shillings from the economic result for the same month of 2017.
This reduction in the deficit clarified BCR, explained by the rise in general government revenue (24.9%), especially tax revenue (27.4%), mainly due to higher revenues from VAT (17.5 %), income tax (20.2%) and ISC (55.2%).
To this was added the lower level of tax refunds (12.5%).
Government non-financial expenditures, on the other hand, increased by 10.3% over the month. This increase corresponds to current expenditure (8.2%), for the three levels of government and capital (18.8%), due to the greater implementation of subnational governments.
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