For instance, at the beginning of this financial year, Treasury put the budget deficit at Sh607.8 billion. By the end of the year, Treasury had quietly revised the budget deficit figures –as the country switched its focus elsewhere and the budget heat had dissipated – to Sh842.7 billion. A budget deficit, also known as a budget hole, occurs when expenses are more than revenue. The Parliamentary Budget Office (PBO), which advises Parliament on the budget, has also flagged the budget deficit in almost every report it has presented in the past three years. For instance, in the new budget, Treasury said it would spend Sh2.79 trillion excluding redemptions.

Source: Daily Nation June 14, 2020 07:52 UTC