Tax shortfall to frustrate target deficit in virus era

The National Treasury building. FILE PHOTO | NMG

The government is likely to struggle keeping the Budget deficit at the projected 7.3 percent of gross domestic product (GDP) in the coming fiscal year due to possible revenue shortfalls amid higher expenditure needs tied to the Covid-19 pandemic.

Analysts at NCBA and investment bank Genghis Capital say tax projections contained in this year’s budget remain ambitious in the face of the prevailing economic reality where there are job losses and businesses being slowed down by the Covid-19 restriction measures.

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