State fails to meet revenue collection target by Sh56bn
Nakuru residents make tax returns at the town’s Kenya Revenue Authority offices. The government failed to meet its revenue collection target by Sh56.3 billion, netting Sh748.2 billion. Photo/FILE
What you need to know:
The amount collected, including appropriation in aid, constituted 22.6 per cent of the Gross Domestic Product (GDP) which, however, represents the highest rate of collection in East Africa.
Ordinary revenue amounted to Sh690.7 billion against a target of Sh724.9 resulting in underperformance of Sh34.2 billion.
Data from the Treasury indicates that the total public debt hit Sh1,633.6 billion as at June 2012 compared to Sh1,387.1 billion the previous year, with external debt constituting 47.4 per cent and domestic 52.6 per cent.
The document tabled in Parliament by Finance minister Njeru Githae on Monday show that there were outstanding arrears to be paid on behalf of the City Council of Nairobi, and Tana and Athi River Development Authority for the fourth quarter.
The official foreign exchange reserves held by CBK rose by 27.5 per cent from $4118 million as at end of June 2011.
The government failed to meet its revenue collection target by Sh56.3 billion, netting Sh748.2 billion against a target of Sh804 billion at the close of the last quarter of the 2011/12 financial year.
The amount collected, including appropriation in aid, constituted 22.6 per cent of the Gross Domestic Product (GDP) which, however, represents the highest rate of collection in East Africa.
Ordinary revenue amounted to Sh690.7 billion against a target of Sh724.9 resulting in underperformance of Sh34.2 billion. Data from the Treasury indicates that the total public debt hit Sh1,633.6 billion as at June 2012 compared to Sh1,387.1 billion the previous year, with external debt constituting 47.4 per cent and domestic 52.6 per cent.
The total gross domestic debt stock increased by 12.4 per cent to Sh858.8 billion by the end of June this year from Sh764.2 billion as at the end of June 2011. External debt stock stood at Sh774.6 billion.
“The debt stock comprised of multilateral debt (59.8 per cent), bilateral debt (31.8 per cent), export credit debt (1.9 per cent), and commercial banks (6.5 per cent),” says the document.
The central government’s cumulative expenditure and net lending for the period ending June 30 amounted to Sh748.2 billion.
“This was Sh135.2 billion below the target of Sh1,082.9 billion and was largely attributed to low absorption in the development expenditures amounting to Sh84.7 billion,” says the Fourth Quarter Economic and Budgetary Review 2011/12.
The overall fiscal balance on commitment basis excluding grants amounted to a deficit of Sh199.6 billion (an equivalent to six per cent of GDP) compared with a deficit of Sh144.3 billion (5.2 per cent of GDP) in a similar period last year.
The document tabled in Parliament by Finance minister Njeru Githae on Tuesday show that there were outstanding arrears to be paid on behalf of the City Council of Nairobi, and Tana and Athi River Development Authority for the fourth quarter.
The Treasury said external financing rose to a net borrowing of Sh98 billion compared to Sh27.9 billion in a similar period the previous financial year.
Treasury figures show that GDP dropped to 3.5 per cent in the first quarter compared to 5.4 per cent in the similar period in 2011. “This was mainly attributed to sectors such as electricity and water, transport and communication, agriculture and forestry, financial intermediation, building and construction, and wholesale and retail,” says the report.
The Treasury statistics indicates that interbank interest rates increased to 17.2 per cent in June compared to 6.4 per cent in 2011 on account of tighter monetary policy.
The Nairobi Securities Exchange (NSE) share index improved from 3225 points in January to 3,704 points in June. “Market Capitalisation increased from Sh1,002 million to Sh1,111 million over the same period.
The recent stance on monetary policy that lowered the CBR to 16.5 per cent from 18 per cent is expected to have an impetus on the performance of the market in the coming months.”
The government spent Sh53.5 billion of its recurrent budget on core poverty programmes.
