CRA alarmed by government borrowing to finance budget deficit

The Commission on Revenue Allocation (CRA) has sounded a warning about borrowing by the national government to meet the fiscal deficit each financial year.

CRA says the current debt trajectory is not sustainable.

CRA Chairperson Jane Kiringai announced a cap of shareable revenue for counties at Ksh.370 billion citing ballooning national debt, effects of COVID-19 on the economy and budget deficits.

The revenue commission declined a request by the Council of Governors (CoG) to increase revenue allocation to devolved units by an additional Ksh.381.5 billion saying the projected revenues of Ksh.2.1 trillion for the 2022/2023 financial year cannot allow for more resources to counties and servicing of national debt.