Kenya Public Expenditure Analysis 2019 : Creating Fiscal Space to Deliver the Big Four while Undertaking a Needed Fiscal Consolidation
The Kenyan government remains committed to a planned fiscal consolidation pathway, which should help contain public debt stock at a sustainable level. Nonetheless, there are significant challenges stemming from a slowdown in revenue collection, a growing demand for transfers to county governments, and the need to fund the big four agenda. These issues raise the probability for fiscal slippages, requiring adequate mitigation to safeguard macroeconomic stability. This report provides an overview of the challenges in revenue mobilization, the size and composition of the national government expenditures, and the efficiency of this spending over the last five years. The analysis identifies options for supporting ongoing fiscal consolidation and creating fiscal space for the big four and broad public services delivery. There are three key messages: first, Kenya’s tax revenue as a share of gross domestic product (GDP) has decreased and decoupled from the growth in the economy, suggesting some important constraints to enhancing revenue collection. Second, government spending is allocated well (to infrastructure and human capital) but there is scope to improve outcomes from the use of these resources. Third, ensuring efficiency and effectiveness of public spending is critical given tight fiscal space and the expenditure needs under the big four.
| Main Author: | |
|---|---|
| Format: | Report biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-06
|
| Subjects: | FISCAL TRENDS, MACROECONOMIC POLICY, PUBLIC DEBT, REVENUE MOBILIZATION, PUBLIC EXPENDITURE, NATIONAL PRIORITIES, FISCAL POLICY, |
| Online Access: | http://documents.worldbank.org/curated/en/466691563357796716/Kenya-Public-Expenditure-Analysis-2019-Creating-Fiscal-Space-to-Deliver-the-Big-Four-while-Undertaking-a-Needed-Fiscal-Consolidation http://hdl.handle.net/10986/32252 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The Kenyan government remains committed
to a planned fiscal consolidation pathway, which should help
contain public debt stock at a sustainable level.
Nonetheless, there are significant challenges stemming from
a slowdown in revenue collection, a growing demand for
transfers to county governments, and the need to fund the
big four agenda. These issues raise the probability for
fiscal slippages, requiring adequate mitigation to safeguard
macroeconomic stability. This report provides an overview of
the challenges in revenue mobilization, the size and
composition of the national government expenditures, and the
efficiency of this spending over the last five years. The
analysis identifies options for supporting ongoing fiscal
consolidation and creating fiscal space for the big four and
broad public services delivery. There are three key
messages: first, Kenya’s tax revenue as a share of gross
domestic product (GDP) has decreased and decoupled from the
growth in the economy, suggesting some important constraints
to enhancing revenue collection. Second, government spending
is allocated well (to infrastructure and human capital) but
there is scope to improve outcomes from the use of these
resources. Third, ensuring efficiency and effectiveness of
public spending is critical given tight fiscal space and the
expenditure needs under the big four. |
|---|