The Secretary to the Treasury, who is also the ministry’s Permanent Secretary (PSST), Ramathan Ggoobi has said the budget cuts are part of fiscal consolidation measures to reduce expenditure and fit within available resources.
Ggoobi said there is light at the end of the tunnel as far as the recovery of the economy is concerned.
He noted that the economy is expected to grow by 5.5% this financial year and inflation is expected to continue reducing to 5%.
He said the ministry is also looking at rationalizing the tax exemptions, noting that reductions in tax exemptions will increase the revenue base and contribute to ensuring that the debt-to-GDP ratio continues declining.
Ggoobi explained that budget cuts are budget repurposing and is about moving money from certain areas that may be important but not critical to those areas that can’t be postponed.
