The Institute of Certified Public Accountants of Kenya has raised alarm over Sh691.5 billion budget deficit in the Sh2.26 trillion budget for the financial year 2016-17, arguing borrowed money should only go into development projects. These include transparency and accountability in public debt management information and anchoring of debt management in a sound macroeconomic and financial sector policies. Barasa called on the government to adopt and implement the International Monetary Fund-World Bank public debt management guidelines to strengthen public debt management and reduce vulnerability to domestic and external shocks. Absorption of development budget, Icpak chairman Fernandes Barasa said, has remained at a lowly 45 per cent whereas recurrent expenditure stands at about 80 per cent. Rotich said in his budget speech to the National Assembly the deficit will be Sh603.2 billion when the Standard Gauge Railway, funded by China, is excluded.

Source: The Star June 20, 2016 04:52 UTC