ARUSHA, Tanzania
East African Community (EAC)
countries expect overall national government spending to rise in the upcoming
financial year (July 1 to June 30).
Kenya, Tanzania, Uganda, and
Rwanda are to present their 2023/2024 budgets before their respective
parliaments on Thursday.
According to the EAC Treaty,
finance ministers of the partner states read their budgets simultaneously,
under a common theme.
The exemptions are Burundi,
South Sudan and latest entrant the Democratic Republic of Congo.
BURUNDI
Burundi’s Minister of Finance,
Budget and Economic Planning, Audace Niyonzima, tabled his country’s budget
estimate on Tuesday, with spending projected to rise 65 percent to BF3.95
trillion ($1.41 billion) in the 2023/2024 financial year. The previous budget
was BF2.39 trillion.
SOUTH SUDAN
South Sudan cabinet passed a
SSP1.8 trillion ($1.38 billion) budget for the next fiscal year in May, up 12.5
percent from SSP1.4 trillion ($1.07 billion) for the 2022/2023 period. The
budget is yet to tabled in parliament for approval.
DR CONGO
DRC is yet to adjust its
budget reading in harmony with the EAC. In December, the country increased its
2023 budget by 46 percent to $16 billion.
Kinshasa formally joined the
regional bloc in July last year after depositing instruments of ratification on
the accession of the EAC Treaty.
Kenya’s National Treasury and
Planning Cabinet Secretary, Njuguna Ndung’u, a former central bank governor,
will present his maiden Ksh3.6 trillion ($25.75 billion) budget for 2023/24, a
6.5 percent increase from the Ksh3.38 trillion ($24.18 billion) the previous
year.
In Tanzania, the Minister of
Finance and Planning, Mwigulu Nchemba, will read his third budget of $19.23
billion (Tsh44.38 trillion), up seven percent from Tsh41.48 trillion ($18
billion).
Uganda's $13.9 billion
(Ush52.74 trillion) budget is being presented by Finance minister Matia
Kasaija who has held the post since March 2015. The government has increased
its spending plan by Ush4.606 trillion ($1.2 billion) from Ush48.13 trillion
($13 billion) in 2022/2023.
Uzziel Ndagijimana Rwanda’s
Minister of Finance and Economic Planning, appointed in 2018, is presenting a
Rwf5.03 trillion ($4.4 billion) budget. Kigali has increased its spending plan
by 5.6 percent from Rwf4.67 trillion ($4.1 billion) the previous fiscal year.
Highlights of the budgets
KENYA
Economy
The economy is expected to
grow by 5.5 percent in 2023 supported by private sector growth,
including strong performance of the services sector, recoveries in
agriculture and ongoing public sector investments.
Financing
Kenya expects to finance 79.3
percent of the budget through internal revenues, 15.9 percent domestic
financing, 1.1 percent external grants, and foreign loans 3.6 percent.
Agreements reached under EAC
common Customs Union:
- Kenya to import rice at EAC tariff of 35
percent instead of 75 percent, and wheat at 10 percent instead of 35
percent to bridge local production deficit.
- Kenya allowed to continue imports of
inputs for manufacture of baby diapers duty free for one more year, and
impose duty of 35 percent on imported diapers for a year.
- Duty free window for import of inputs for
manufacture of animal feeds extended for one year. “Locally manufactured
animal feed is expensive and is contributing to food inflation.”
- Kenya allowed to extend for one year the
imposition of 25 percent duty on imported mobile phones. Duty free window
for importing inputs for local assembly of mobile phones extended for a
year.
UGANDA
Uganda’s economy is projected
to grow at six percent in financial year 2023/2024, according to Mr
Kasaija.
TANZANIA
Tanzania projects to finance
70.7 percent of the budget with domestic revenues, 12.3 percent from
development partners in form of grants and concessional loans, 12.3 percent
from domestic borrowing and 4.7 percent from from external non-concessional
sources.
The economy is expected to
expand at 5.2 percent in 2023.
RWANDA
Rwanda will finance 63 percent
of the budget through domestic revenues, while external loans will constitute
24 percent and external grants 13 percent.
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