East Africans tighten belts as states cut spending, raise taxes
A group of Kenyans protest on February 21, 2023 outside Parliament in Nairobi over the high cost of living. East Africans are bracing for tightening of belts as their broke governments cut spending and raise taxes amid a funding squeeze linked to higher levels of public debt and low domestic tax revenues. PHOTO | FILE | NMG
East Africans are bracing for tightening of belts as their broke governments cut spending and raise taxes amid a funding squeeze linked to higher levels of public debt and low domestic tax revenues.
The drastic spending cuts and new tax measures are expected to be announced in the 2023/24 financial year beginning in June, marking the beginning of the normalisation of fiscal policies as governments scale down on Covid-19 support measures including tax breaks as well as further tightening on monetary policy to address inflation.
