The National Treasury is expected to make significant cuts in the Budget estimates for the 2025-26 financial year in its efforts towards fiscal consolidation and to live within its means.
This aims to reduce the fiscal deficit to 4.5 per cent of gross domestic product (GDP) for the financial year from 5.1 per cent in the current year, with a medium-term target of reducing the deficit to 2.7 per cent.
In a Cabinet meeting chaired by President William Ruto at State House, Nairobi yesterday, Cabinet Secretaries were directed to work closely with the National Treasury to identify and implement necessary adjustments within their respective ministries and State departments.
As a result, the initial budget estimates of Sh4.3 trillion as set out in the 2025 Budget Policy Statement will undergo substantial revisions before being tabled in Parliament.
