Treasury forecasts 18pc revenue jump on tax reforms

The National Treasury is predicting a 17.5% increase in revenue collection in the fiscal year 2022/23 which will be underpinned by the ongoing reforms in tax and revenue administration.

Speaking during the launch of public hearings on FY2022/23 Budget, National Treasury and Planning Cabinet Secretary Ukur Yatani has said the government has embarked on implementing the COVID-19 Economic Recovery Strategy to revitalize the economy.

“Despite the challenges brought about by the COVID-19 and subsequent containment measures, leading indicators for the economy so far point to robust economic recovery following the reopening of the services sectors and stronger global demand,” said CS Yatani.

The FY 2022/23 and the Medium-Term Budget are being framed against a background of projected global economic recovery.

The overall expenditure and net lending is projected at 23.5% of GDP while the fiscal deficit is projected at 5.7% of GDP.

The deficit will be financed by a net external financing of 2.7% of GDP and net domestic financing of 3% of GDP.

“The pandemic has had negative effects to global and domestic economy particularly since March 2020. FY2022/23 Budget Proposals have therefore incorporated the Economic Recovery Strategies aimed at putting back the economy to a growth trajectory,” said Saitoti Torome, PS Planning.

The three-day public hearings on the budget which will inform the FY 2022/23 and Medium Term Budget proposals, that will be consolidated into a National Budget and submitted to Parliament early next year.

CS Yatani, said the medium-term development priorities to be implemented by the sector budget proposals will include: fast-tracking implementation of MTP III programs and projects; as well as provide budgetary allocations to support the growth of the manufacturing sector, revitalization of agriculture, strengthening the health care system and providing affordable housing.

  

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