Treasury CS Njuguna sounds alarm over Sh133.5bn projected revenue shortfall
By Patel Okumu |
Kenya's Treasury Cabinet Secretary, Njuguna Ndungu, has expressed concerns over a potential loss of Sh133.5 billion in projected revenue for the current financial year.
Kenya's Treasury Cabinet Secretary, Njuguna Ndung'u, has expressed concerns over a potential loss of Sh133.5 billion in projected revenue for the current financial year. The apprehension stems from a decline in imports of motor vehicles and fuel, along with lower-than-anticipated sales of alcoholic beverages, spirits, and cosmetics.
The unforeseen drop in revenue is attributed to fluctuations in import patterns, particularly in the automotive and fuel sectors, which play a crucial role in the country's economic landscape. Additionally, the sales performance of certain consumer goods like beer, spirits, and cosmetics has fallen short of initial projections.
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CS Ndungu highlighted the need for strategic fiscal measures to address the revenue shortfall and maintain economic stability. He emphasized the importance of closely monitoring and adapting to changing market dynamics to mitigate the impact on the national budget.
The Treasury is expected to recalibrate its revenue projections and explore alternative avenues to make up for the anticipated shortfall. Such adjustments may include reevaluating tax structures, optimising expenditure, and identifying potential sectors for targeted economic stimulus.
Economic analysts suggest that global and domestic factors, such as fluctuations in oil prices and changing consumer behaviors, could be contributing to the revenue challenges. As the government grapples with these economic uncertainties, a comprehensive strategy that balances fiscal responsibility and economic growth will be essential to navigate the evolving financial landscape.
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