This document reflects and supports the country’s commitments as defined in the Government’s Economic Development and Poverty Reduction Strategy 2 (EDPRS 2) and the VISION 2020.
Consistent with this objective, the BFP also articulates the medium term commitments to achieve fiscal consolidation through accelerated domestic revenue mobilisation and expenditure rationalisation / prioritisation in order to narrow the fiscal gap and reduce the reliance on external donor financial assistance.
The BFP has been prepared against the background of several challenges both on the external and domestic fronts.
Regarding the external front, the global economy is still fragile despite improved prospects as important risks remain, including risk of deflation in advanced economies, tighter financial conditions resulting in a slowdown in investment and geopolitical risks in central Europe with potential spillages on other areas.
Their impact on world trade and financial flows including donor funds therefore remain uncertain. On the domestic scene adverse weather conditions that could negatively affect agricultural production as well as capacity and other constraints that delay implementation of investment projects could negatively affect economic performance.
For more details on the Budget Framework Paper, click on the following link