Monday, 2 May 2016

Key elements of the 2016 national budget




THE budget will have an expenditure envelope of K14.2 billion which is down from where it was for 2015, with a total revenues at K12.1 billion.

It is a deficit of K2 billion or 3.7 percent of GDP within fiscal responsibility anchor limits, with a total debt to GDP ratio or just over 35%. 

The national budget reduced from K16.2 billion in 2015 to K14.2 billion in 2016 due to a decrease in the operational component from K8.1 billion to K7.6 billion.

A decrease in the Capital Investment Component has come down from K7 billion to K5.1 billion in 2016, with an increase in public debt interest from K1.1 billion to K1.5 billion. 

Two components of the Public Investment Program (PIP) for 2016 include Domestic Financing and Donor Project Grants. 

Domestic Financing consists of a decrease in Services Improvement Program (SIP) funding of K1.4 billion- a decrease from K1.8 billion in 2015 (decreased due to the exemption).

Other fixed commitments decreased by 50% to K557 million from K1 billion in 2015
Ongoing Projects K761 million from K1.5 billion in 2015 and New Projects at K346 million from K373 in 2015. 

Donor Project Grants stand at K1.1billion from K1.4 billion in 2015.

All in total K5.1 billion Public Investment from 2015’s K7 billion figure. 

The overall expenditure ceiling for the Public Investment Program of K5.1 billion accommodates K3 billion Direct Government funds, K930 million concessional loan funded projects and K1.1 billion of project support grants from development partners.

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