The government has released the 2018/2019 fiscal strategy premised on the theme “Creating Jobs, Transforming Lives and Sharing Prosperity” with the Big Four Agenda in mind. It is widely seen as a balancing act of implementing the strategic Big Four agenda that is intended to spur economic growth. While trying to achieve this, the government is also looking at ensuring that the public debt remains on a sustainable path.
Despite the ups and downs that faced the country, we managed a 4.9% growth in 2017 leading to the creation of 898,000 new jobs as compared to 833,000 jobs in 2016. There was clear macro-economic stability with inflation, interest rates and exchange rates remaining stable all of which have enhanced investor confidence.
In order to achieve the Big Four Agenda, this budget has taken the path of curtailing the resources going to the lower-priority areas following the zero-based budgeting approach enabling the savings and gains made to be redirected to the Big Four Agenda. Cumulatively, the Four agenda areas have been allocated Kshs. 1.065 Trillion out of a total budget of Kshs. 2.55 Trillion.
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