Predictable and Sustainable increase in fiscal space for efficient execution of national and county programs. National and county governments achieve close to their revenue potential. These revenues are translated into sustainable resources for policy implementation through adherence to reliable fiscal frameworks consistent with sustainable borrowing and debt servicing costs and reduced exposure of the economy to risk. The growth in the wage and pension bills limited to public sector establishment structures aligned to policy objectives. Further increase in private sector resources mobilized for policy commitments.
1.1 A fit for purpose, revenue policy and legal framework and rationalized tax expenditures including exemptions.
1.2 Efficient and effective customer-oriented revenue administration with high taxpayer filing and payment compliance ratios.
1.3 Efficient and effective revenue policy administration at county level, with high taxpayer compliance supported politically and/by updated legal framework.
1.4 Credible fiscal frameworks at the national and county level include realistic revenue and expenditure projections consistent with a reduction in the national fiscal deficit over time.
1.5 The exposure of Kenya to shocks is reduced as a result of the reduced stock of debt due to borrowing within fiscal targets consistent with a reduced fiscal deficit and reduced cost of financing.
1.6 Mandates and functions are rationalized at the national and county levels and the growth in the wage and pension bill is limited relative to other expenditure and is maintained below 35% of government revenues.
1.7 Private sector and State Corporation resources mobilized for delivery of appropriate investments and services and SC reliance on subsidies and transfers reduced.