Table of Contents

LIST OF TABLES............................................................................................................................................. 2

LIST OF FIGURES........................................................................................................................................... 2

LIST OF ABBREVIATIONS............................................................................................................................... 3

PART ONE..................................................................................................................................................... 4

INTRODUCTION............................................................................................................................................ 4

FISCAL POLICY...................................................................................................................................................... 4

ANALYSIS OF THE TABLE............................................................................................................................... 7

PART TWO.................................................................................................................................................... 8

UGANDA....................................................................................................................................................... 8

BACKGROUND.......................................................................................................................................................8
BUDGET FRAMEWORK AND POLICIES.........................................................................................................................8

KENYA........................................................................................................................................................ 10

BACKGROUND.....................................................................................................................................................10

RWANDA.................................................................................................................................................... 11

DEMOCRATIC REPUBLIC OF CONGO............................................................................................................ 11

BURUNDI.................................................................................................................................................... 11

TANZANIA................................................................................................................................................... 11

SOUTH SUDAN............................................................................................................................................ 12

NETHERLANDS............................................................................................................................................ 12

PROFILE.............................................................................................................................................................12
ECONOMY, BUDGETING AND PLANNING..................................................................................................................13
Budget framework and Rules.....................................................................................................................13
Taxes......................................................................................................................................................... 15

LIBERIA....................................................................................................................................................... 15

BACKGROUND.....................................................................................................................................................15
BUDGETING........................................................................................................................................................15
Budget Assumptions..................................................................................................................................16

MORROCCO................................................................................................................................................ 17
 COUNTRY BACKGROUND.......................................................................................................................................17
PUBLIC FINANCE LEGISLATION................................................................................................................................17

UNITED KINGDOM...................................................................................................................................... 18

FISCAL AND SPENDING FRAMEWORK........................................................................................................................18

BRAZIL........................................................................................................................................................ 19

INDIA.......................................................................................................................................................... 19

COUNTRY PROFILE...............................................................................................................................................19

List of Tables
Table 1:Summary of indicators for fifteen countries from Africa, Europe and Asia and South
America......................................................................................................................................5
Table 2: Budgets for the partner states for finanical year 2023/24............................................6
Table 3: Programme allocations for FY 2022/23.......................................................................9
Table 4: Revenue and Expenditure trends for 2021/22 - 2022/23...........................................12
Table 5: Total budget and Revenue for Rwanda 2022/23........................................................14
Table 3: Expenditure allocations for FY2022/23 -2023/24.................................................18

List of Figures
Figure 1:: Distribution of Revenue..........................................................................................10
Figure 2:Sources of Revenue for FY2022/23 – 2023/24.........................................................17
Figure 3:Overview of central government revenue and expenditure 2020..............................21
Figure 4:Sectoral Distribution of the 2023 Budget..................................................................23
Figure 5: UK's 2023 revenue and spending priorites...............................................................26
List of Abbreviations

BOU Bank of Uganda

CIT Corporate Income Tax

EAC East African Community

DRC Democratic Republic of Congo

GDP Gross Domestic Product

IMF International Monetary Fund

MDAs Ministries, Departments and Agencies

MFF Multiannual Financial Framework

MTEF Medium-term Expenditure Framework

NDP National Development Plan

PDM Parish Development Model

 PART ONE

Introduction
Fiscal Policy

Fiscal policy generally refers to spending programs and tax policies that government uses to
guide the economy. By ‘fiscal’ we mean any activities relating to government revenues and
expenditure. ‘Spending’ refers both to spending that has immediate cash consequences and to
all other non-cash items that have economic consequences such as depreciation, provisions,
and the write-down in value of assets.
Governments frequently use fiscal measures alongside monetary policy to achieve the desired
goals. The monetary policy is at the discretion of the central bank to manipulate money
supply and rates of interest.
Fiscal spending can be categorized into three broad types; (a) Mandatory spending – which is
typically entitled or even statutory obligation (b) Discretionary spending – where government
may have some wiggle room and (c) Supplementary spending – where budget items require
even more money to be approved and spent. Using the case of the Ugandan Economy,
Uganda approved 48 trillion shillings for fiscal year 2022/23 but with a discretionary budget
of only 26 trillion shillings. The government also required more 2 trillion shillings for
supplementary budgets and ended up spending up-to 50 trillion shillings.
There is continuing interest among scholars and policymakers in the roles that fiscal policy
plays in the mobilization and allocation of resources necessary to facilitate the realization of
desired economic outcomes consistent with a country's development agenda
We examine these issues in five East African Community (EAC) member countries, namely
Burundi, Kenya, Rwanda, Tanzania and Uganda. The analysis excludes South Sudan due to
significant data limitations. The EAC is considered one of the most dynamic African regional
economic communities with aspirations of becoming a monetary union. Within the regional
economic integration framework, EAC member countries agreed upon macroeconomic
convergence targets that include inflation, fiscal deficits, debt and interest rates.
 Table 1:Summary of indicators for fifteen countries from Africa, Europe and Asia and South America

COUNTRY/ Uganda Kenya Tanzania Rwanda South Burundi DRC Ethiopia Morocco Liberia Egypt India United Netherlands Brazil
INDICATORS Sudan Kingdom
Population 47 54 65 13 10 12 99 123 37 5 110 1,417 66 17 215
(“000,000)
Location East East East East East East East East North West North South Europe Europe South
Africa Africa Africa Africa Africa Africa Africa Africa Africa Africa Africa Asia America
Growth rate 4.7 4.8 4.6 8.2 -10.8 1.8 8.9 5.3 1.1 4.8 6.6 7.0 4.1 4.5 2.9
(%)
Per capita 2,693.8 5,763.9 3,096.9 2,792.4 - 836.2 1,337.4 2,811.6 9,518.7 1,725.0 15,091. 8,379.1 54,602.5 69,577.4 17,821.7
Income 0
Life M 60 59 64 64 53 60 57 62 72 59 68 66 79 80 70
expectanc F 65 64 68 68 56 64 62 68 76 62 73 69 83 83 76
y (Years)
Debt to GDP 48.5% 68% 40%* 66% 58.5% 66.5% 61.9% 46% 71.6% 55% 89% 84% 85% 48.6% 73%
ratio
Tax to GPD 13.5% 15.3% 11.8% 16.9% - 23.65%* 9.9% 6.1% 22.5% 27.3% 13.3% 16.7% 27% 39.7% 15.8%
ratio
Governance Dem. Dem. Dem. Dem. Dem. Dem. Dem. Federal Const. Const. Dem. Dem. Const. Constitutional Federal
system Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Monarchy Rep. Rep. Rep. Monarchy Monarchy Rep.
Budget year 1st July 1stJuly- 1stJuly – 1stJuly- 1stJuly- 1st July - Jan - July - Jul Jan - Dec July - July - April - 6th April – Jan – Dec Jan -
th th th th th th
system - 30 June 30 June 30 June 30 June 30 June Dec June June March 5 April Dec
30thJune
Source: World bank database, United Nations database, International Monetary fund data base
Analysis of the table
Table 1 above provides a set of indicators that speak to demographic structure and economic
progress of the 15 selected countries. Among these is are the governance systems and budget
year systems followed by these states. India is more populated than all countries studied
above combined. In fact, India is the second most populated country after China. In this
category, Libera is the least populated. In regards to life expectancy, it can be observed that
female life expectancy is higher than that of males across the board but also significantly
higher in wealthier countries as indicated by per capita income. It can be concluded therefore
that richer countries have a higher life expectancy but population size has no correlation on
either one of these indicators.
The performance of East African countries with the exception the newly joined South Sudan
and Democratic Republic of Congo is nearly similar. This is because South Sudan is still a
young country without strong governance systems and mired in civil wars. As is the case with
South Sudan, DRC is a resource rich country that has struggles with political challenges both
locally and internationally. In terms of budgeting, regional group budgeted for $103 million
(43% to be funded by development partners) to be used on infrastructure projects to promote
intra-EAC trade. According to the EAC Treaty, Finance Ministers of the Partner states read
their respective budgets simultaneously under a common theme and below is a summary of
the respective budgets.
COUNTRY BUDGET 2022/23 BUDGET 2023/24
Kenya $24.24 billion (Ksh 3.3 trillion) 25.78 billion (Ksh 3.6 trillion
Tanzania $18 billion (Tsh 41.48 trillion) $19.23 billion (Tsh.44.38 trillion)
Uganda $12.93 billion (Ush 48.13 trillion) $13.9 billion (Ush 52.74 trillion
Rwanda $4.1 billion (Rwf 4.67 trillion) $4.4 billion (Ush 5.03 trillion)
Table 2: Budgets for the partner states for finanical year 2023/24

Source: East African Community website

Note that the financial years for the East African countries with the exception of DRC also
run from July to June. DRC is expected to harmonize and to follow the guidelines of the bloc.
For governance systems, the majority of countries studied are democratic republics (9)
followed by constitutional monarchies (4) while the rest are federal republics. England and
Netherlands are the richest in the category and both are constitutional republics, but so is
Liberia. Without enough data, it is not possible to draw a connection of governance systems
to economic progress.
 PART TWO

Budget framework
Budget frameworks are a set of institutional arrangements for prioritizing, presenting, and
managing revenue and expenditure in a multiyear perspective. These frameworks enable
governments to demonstrate the impact of current and proposed policies over the course of
several years and signal or set future budgetary priorities. Budgetary governance is the
process of formulating the annual budget, overseeing its implementation and ensuring its
alignment with public goals. The recommendation on Budgetary Governance sets out ten
principles which provide a concise overview of good practices across the full spectrum of
budget activity and aim to give practice of designing, implementing and improving budget
systems to make a positive impact on citizens’ lives. The following are the 10 principles;
1) Manage budgets within clear, credible limits for fiscal policy
2) Closely align budgets with the medium-term strategic priorities of government
3) Design the capital budgeting framework in order to meet national development needs
in cost-effective and coherent manner
4) Ensure that budget documents and data are open, transparent and accessible.
5) Provide for an inclusive, participative and realistic debate on budgetary choices.
6) Present a comprehensive, accurate and reliable account of public finances.
7) Actively plan, manage and monitor budget execution
8) Ensure that performance, evaluation and value for money are integral to the budget
process
9) Identify, assess and manage prudently longer-term sustainability and other fiscal risks
10) Promote the integrity and quality of budgetary forecasts, fiscal plans and budgetary
implementation through rigorous quality assurance including independent audit.

A strong framework for public expenditure accountability substantially improves on the

utilization of public funds and reduces on corruption and the loss of public funds. Public
expenditure accountability also promotes good governance since citizens are involved in
fiscal and budgeting processes where they let their voices be heard. This improves citizens’
trust in government and gradually on their compliance with government policies, especially
those aimed at raising required revenues such as taxation
Uganda
Background

Uganda is a landlocked East African country with an estimated population of 44 million

people making it one of the most populous landlocked countries. Regarding Uganda’s fiscal
management the Ministry of Finance, Planning and Economic Development is charged with
this duty. This Ministry’s pivotal role is to coordinate the development planning, mobilization
of public resources and ensuring effective accountability for the use of such resources to
benefit all Ugandans. Previously the Ministry of Finance and the Ministry of Planning and
Economic Development were separate ministries. However, in 1998, there was a merger on
the advisement of the World Bank noting the critical need to establish fiscal discipline while
building links between policy formulation, planning and budgeting. Currently, the substantive
Minister of Finance (Minister Matia Kasaija) is assisted by four other ministers of state;
Minister of state for Planning, Minister of state for Investment and Privatization, Minister of
state for Microfinance and Minister of state in charge of General Duties.

HOW DOES GOVERNMENT IMPOSE TAX?

QUALITIES OF A GOOD TAX SYSTEM.
1. Equity/fairness
Tax should be levied fairly so that;
The same amount of tax is paid by persons or entities that are equal in
earnings or wealth (horizontal equity)
 The contribution in tax should increase as the taxable income increases (Adam
Smith)
2. Convenience
A tax payer should not undergo undue difficulty to pay tax. The place, medium,
mode, manner, and time of payment should not be a burden to the tax payer. (Adam
Smith)
3. Certainty
The taxes must be well understood by both tax payers and tax collectors. The time and
reason of payment as well as the amount to be paid by an individual should be well
documented and certain (Adam Smith)
4. Economical
The administrative cost of collecting taxes should be kept as low as possible to both
the collecting agent and the tax payer (Joseph Stiglitz)
 5. Simplicity
The type of tax and the method of assessment and collection must be simple enough
to be understood by both the tax payers and the collectors. Complicated taxes lead to
disputes, delays, corruption, avoidance and high costs of collection in terms of time
and resources.
6. Ability to pay
The tax levied should not exceed the taxable income of a person. This is to avoid
discouraging the participation in the tax base. (Adam smith

Uganda’s tax administration is governed by a number of laws; Article 152(1) of the Uganda
Constitution provides that “No tax shall be imposed except under the authority of act of
parliament”. Therefore, the Uganda Revenue Authority Act.
Cap 196 was put in place to provide the administrative framework in which taxes under
various Acts are collected.
Uganda Revenue Authority administers the tax laws (acts) on behalf of the ministry of
finance, planning and Economic Development under the following legislations:
i. Customs Tariff Act. Cap 337
ii. East African Community Customs Management Act, 2004.
iii. East African Excise Management Act Cap 28
iv. Excise Tariff Act Cap 338
v. Income Tax Act Cap 340
vi. Stamp Duty Act Cap 342
vii. The Finance Acts
viii. The Gaming and Pool Betting (control and Taxation) Act Cap 292
ix. The Tax Procedures Code Act,2014
x. Traffic and Road Safety Act Cap 361
xi. Value Added Tax Act Cap 349
xii. All other taxes and non-tax revenue as the minister responsible for finance may
prescribe.

ANALYSIS OF THE FISCAL POLICY/TAX POLICY

Uganda’s tax regime is geographical for all Ugandan residents and source-based for non-
residents. any non-resident who carries on business in Uganda, is employed in Uganda, or
sells certain types of properties will be subject to tax system. The tax regime is the same
nationwide. Every individual that is liable to pay tax is obliged to apply to the Uganda
revenue authority for registration. Once this process is concluded a certificate of registration
is issued. The case is the same for any foreign investor seeking to operate in Uganda.
DIRECT TAXES
The Ugandan Income Tax Act cap 340(ITA) imposes Income Tax on incomes of
corporations, partnerships, trusts and individuals residing or carrying on business within the
country. There various deductions and exemptions under the ITA.
The Income Tax Act also imposes a Withholding Tax on individuals and corporations, which
is withheld at source at the time of payment. This tax is imposed while making certain
payments such as Employment Income (PAYE), payment on dividends, interests,
professional fees. The tax is also imposed on every non-resident that derives interest,
dividends, royalties, rent, and natural resources payment, from sources in Uganda. The rate of
withholding tax on most payments in Uganda is 15%; however, in respect of goods and
services a withholding tax of 6% is levied. A withholding tax rate of 20% is imposed on
income from government securities whose maturity period exceeds 10 years and 10% for
government securities whose maturity period is at least 10 years.
Uganda has Double-Taxation Treaties (DTTs) with nine countries; Denmark, India, Italy,
Mauritius, Netherlands, Norway, south Africa, UK,and Zambia. The main purpose of these
DTTs is to eliminate double taxation and facilitate the allocation of taxing rights. All these
treaties pose different legal provisions from those envisaged under the ITA. In the event that
there is a conflict between the provisions of ITA and terms of the particular DTT. the latter
takes precedence owing to Uganda’s constitution, which enjoins to respect international law
treaty obligations.
Uganda levies Consumption Taxes on goods and Services. These include Value Added Tax,
Import duty, Export duty and Excise duty.
Stamp Duty, the stamp duty act imposes varying duty rates depending on the nature of
transaction

Individual Income Tax.

Rates range from 10% to 40%, depending on the individual income.an individual is a tax
resident if they have a permanent home in Uganda, spend at least 183 days in any 12-month
period in Uganda or are present in Uganda for an average of more than 122 days during three
consecutive tax years.

Corporation income Tax.

A standard 30% income tax rate is imposed on corporations. This applies to both residents
and non-residents corporations; in the case of non –resident corporations, in addition to
payment of the standard 30% corporation tax, a withholding tax rate of 15% is levied on a
branch of a foreign company on the profit repatriated to the head office.
The ITA also designates as exempt from tax, income earned by specific types of organization.
The ITA expanded the definition of exempt organization to include a non-profit research
institution. The intention of this is to promote investment in not- for-profit research.

Capital gains tax.

Capital gains tax is provided for under part 1 of the ITA. Capital gains tax arises from the
disposal of a business asset, such as stock investments, land and buildings. Under the ITA,
disposal of an asset occurs when an asset has been sold, exchanged, redeemed, distributed,
transferred by the taxpayer by way of gift, destroyed or lost. a capital gain is calculated as the
total sale price minus the original cost of the asset.
Capital gains are included in the gross income of the taxpayer and assessed as business
income. Capital gains are taxed at the standard corporate tax rate of 30%.

Turnover taxes for small business taxpayers.

Small business taxpayers are subject to income tax computed as a percentage of business
turnover. The turnover tax are final taxes and taxpayers in this category are not expected to
file tax returns. Tax rates vary depending on a business turnover.
INDIRECT TAXES
Indirect taxes levied on the consumption of goods and services include VAT, Excise duty and
Import duty. These are regulated by, the Value Added Tax Cap 349, the Excise Duty Act,
2014 and the East African Community Customs Management Act respectively.
Value Added Tax (VAT)
The standard VAT rate is 18% of the gross amount paid. Some goods and services are
exempt from VAT or Zero rated. Exempt goods or services are neither zero-rated nor subject
to the standard rate. Zero-rated goods or services attract a zero (0%) VAT rate. For entities
that make supplies to the Ugandan government, the VAT Act provides the option to account
for VAT on such supplies on a cash basis.
Excise Tax
Excisable goods and services are stipulated under the second schedule of the Excise Duty
Act, 2014, in accordance with the excise duty, A person providing such an excisable service
is liable to pay the duty on that service, and the liability arises on the date of provision. A
manufacturer of an excisable good is liable to pay the duty on the manufactured good when it
leaves the manufactures premises.an importer of excisable goods pays excise duty at the time
of import as per section 4 of the Excise Duty Act.
Customs Duty
Rates of import duties and export duties are set out in the schedules of the EAC-CMA and in
the Common External Tariff book for the East Africa Customs Union. Such duties and taxes
are payable through self-assessment procedures. Taxpayers are required to use the services of
licensed clearing and forwarding agents to make declarations that are captured in the
automated system for Customs Data (ASYCUDA) system to enable payment of tax in
designated banks.
Import Duty
This refers to the tariff levied on goods at the time of importation into the country. therefore,
everyone who imports goods into Uganda, depending on their classification, is liable to pay
import duty. however, certain goods which are classified as duty free have a zero percent
duty levied on them. Most finished products are subject to a 25% duty, while intermediate
products face a 10% levy. Raw materials (excluding food staff) and capital goods may still
enter duty free. Import goods are also charged VAT of 18% and a withholding tax of 6%.
Imports are also subject to a charge of 1.5% infrastructure tax to finance railway
infrastructure development.
Export Duty
Almost all exports in Uganda are tax-free except tobacco leaf, fish, fish maw, gold and
unprocessed hides and skins
Tax Procedure Code Act (TPCA)
Under Ugandan tax laws, procedures for the administration of specified tax laws are carried
out under the enabling provisions of the Tax Procedure Code Act.

Budget framework and policies

The principal law that governs Public Finance in Uganda is the Public Finance Management
Act 2015. This is a set of laws, systems, and processes that sovereign states use to mobilize
revenues, allocate and account for public funds. More particularly the Act provides guidance
on Macroeconomic and Fiscal policies; Budget preparation and management; Public Debt
management; Accounting and Auditing as well as the contingencies fund. The charter of
fiscal responsibility is another important document which provides a strategy for operating a
fiscal policy that is sustainable with sustainable fiscal balances.
Uganda maintained the same theme for they budget of 2022/23 and 2023/24 which is “Full
Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization,
Expanding and Broadening Services, Digital Transformation and Market Access”. This
theme is in line with the East African Community (EAC) budget theme for “Accelerating
Economic Recovery, Climate Change Mitigation, and Enhancing Productive Sectors for
Improved Livelihoods”
This budget is also anchored on Uganda’s flagship program, the Parish Development Model
(PDM), that intends to monetize the bulk of Ugandans trapped in the subsistence economy in
which at least a trillion shillings was allocated for this program.
At the start of the NDP III, whose goal is to increase household income and improve quality
of life, Uganda adopted the Programme Based budgeting approach away from Sectors and
has therefore identified and allocated funds to the following programmes.

Table 3: Program allocations Comparisons

Programs Allocation in Allocation in

Billion shillings Trillion
(2022/2023) shillings
(2023/2024)
Human Capital Development and Social 9,100 9.5
Protection Programme
Community Mobilization and Mindset Change 42.564
Programme
Innovation Technology Development and 274
Transfer Programme
Regional Development Programme 1,157.48 1
Governance and Security Programme 7,1673.3 7.5
Legislation, Oversight and Representation 915.1
Programme
 Public Sector Transformation Programme 222.7
Development Plan Implementation Programme 1,186.4 1.8
Integrated Transport Infrastructure & Services 4,145.1 4.4
Programme
Sustainable Energy Development Programme 1,577.881 1.3
Sustainable Urbanization and Housing 407.967
Programme
Private Sector Development Programme 1,600 1.8
Manufacturing Programme 419.743
Digital Transformation Programme 205.1 0.192
Natural Resources, Environment, Climate 635.142 1.1
Change, Land and Water
Agro-Industrialization 1,450.03 1.7
Sustainable Development of Petroleum 904.1
Resources Programme
Tourism Development Programme 89.293
Source: Background to the Budget, Fiscal year 2023/24

Uganda moved away from sector budgeting to program based approach in 2021 but the
budgeting priorities largely remained the same. From Table 3, governance and security still
remains at the top of the spending programs.

Figure 1:: Distribution of Revenue

 Tax Revenue
Non-Tax revenue
Grants
Loans

Source: Uganda Revenue Authority

Implication of the World Bank decision

Uganda has the largest multilateral debt stock of Ugx 29.91 trillion including arrears largely
from the World Bank financing arm, the International Development Association (IDA)
representing 55% followed by ADF with 19%, IMF with 11% and IDB 5%. This does not
include the grants which mostly fund the Human Capital Development (HCD) programmes.
The recent pronouncement of the World Bank Group to freeze funding will not affect the
ongoing projects to a tune of 9.5 trillion. The following however are the likely implications of
this pronouncement; (a) Reduction of social sector financing; (b) Increased pressure for
domestic borrowing which is a policy reversal given that Uganda had taken a stand to reduce
Domestic borrowing significantly this financial year; and (c) Impact of the forex stability.
The freeze has the potential to take out a lot of dollars from our market as the Bank of
Uganda’s ability to stabilize the financial market is dependent on its ability to access dollars.
Kenya
Background

The National Treasury of the Republic of Kenya derives its mandate from the Constitution
2010, the Public Management Act 2012, and the Executive Order No.2/2013. It is the
Ministry in charge of strengthening financial and fiscal relations between the National
Government and County Governments and encourage support for county governments in
performing their functions. The National Treasury also prepares the annual Division of
Revenue Bill and the County Allocation of Revenue Bill. At the helm of the leadership is the
Cabinet Secretary Professor Njuguna Ndung’u.
Vision 2030: In 2007, the Government of Kenya pronounced “Vision 2030” as its long-term
plan for attaining middle income status as a nation by 2030. To ensure implementation of the
Vision 2030, the government prepares successive medium-term plans (“MTPs“) that outline
the policies, programmes and projects that the government intends to implement over a five-
year period.
The Medium Term Plans: The first MTP covered the period from 2008 to 2012. A number
of projects aimed at national healing and reconciliation following the post-election violence
were implemented. Repair of damaged infrastructure, assistance to affected small scale
businesses and resettlement of internally displaced persons were all undertaken in order to
raise GDP growth (which fell to 1.5 per cent. in 2008) and to promote national reconciliation.
The second MTP of Vision 2030 was unveiled in October 2013 covering 2013 to 2017. The
second MTP gave priority to devolution as specified in the Constitution. It aimed at
transforming the economy focused on rapid economic growth on a stable macro-economic
environment. The second MTP intended to achieve modernisation of infrastructure,
diversification and commercialisation of agriculture, food security, a higher contribution of
manufacturing to GDP, wider access to African and global markets, wider access for
Kenyans to better quality education and health care, job creation targeting unemployed youth,
provision of better housing and provision of improved water sources and sanitation to
Kenyan households.
The third MTP unveiled in March 2017 carried forward completion of the programmes and
projects initiated during the second MTP. The MTP aims to achieve high inclusive, broad
based economic growth, increasing the share of manufacturing and industrial sectors and
increasing the share of exports to GDP, especially manufactured exports, as a means to
generate employment and higher economic growth and to ensure a sustainable balance of
payments position.
The “Big Four” Agenda
In line with the strategies outlined in the third MTP and building on the progress made so far
under Vision 2030, the Government has been implementing the “Big Four” Agenda over the
past three years. The agenda is designed to help achieve the social and economic pillars of
our Vision 2030 and the development aspirations espoused in the Kenyan Constitution.
Actualization of policies and programmes under each pillar is expected to accelerate and
sustain inclusive growth, create opportunities for decent jobs, reduce poverty and income
inequality and ensure that we create a healthy and food secure society in which Kenyans have
access to affordable and decent housing.

The Kenya Kwanza Government was elected in August 2022, replacing the previous Jubilee
Government. Kenya Kwanza Government’s Economic Recovery Agenda is anchored on a
bottom-up approach. The agenda is geared towards economic turnaround and inclusive
growth. Special focus will be placed on increased employment, more equitable distribution of
income, social security while also expanding the tax revenue base, and increased foreign
exchange earnings. The new Government intends to implement policies and structural
reforms and promote investment in five core thematic areas that are expected to have the
highest impact at the bottom of the income earnings. These are: Agriculture Productivity;
Micro, Small and Medium Enterprise (MSME) Economy; Housing and Settlement;
Healthcare; and Digital Superhighway and Creative Economy

Table 4: Revenue and Expenditure trends for 2021/22 - 2022/23

Revenue Performance (2021/22) Revenue Perfomance (2022/23)

Exchequer Kshs. 1.899 Trillion Exchequer Kshs. 2.03 Trllion
(23%) (6.9%)
Domestic Taxes Kshs.1.297 Trillion Domestic Taxes Kshs. 1.407 Trillion
(102.4%) (8.5%)
Customs Taxes Kshs. 728.53 Billion Customs Taxes Kshs. 754.09 Billion
(103.6%) (3.5%)
Agency Fees Kshs. 131.479 Billion Agency Fees Kshs. 136.39 Billion
(5.1%) (3.7%)

Expenditure (2021/22) / Percentage share Expenditure (2022/23) /Percentage share

Recurrent Kshs. 1.387.5 Trillion Recurrent Kshs. 2.530
Development Kshs. 711.5 Billion Development Kshs. 734.5
 County Share Kshs. 370 Billion County Share Kshs. 385.4
Source: Kenya Revenue Authority
The Housing project in Kenya

In Kenya, the right to housing is embedded in the constitution, which provides that “Every
person has the right to accessible and adequate housing, and to reasonable standards of
sanitation.” At the start of his second term in 2018, Kenya’s President Uhuru Kenyatta
launched an affordable housing programme as one of the big four agenda pillars to promote
long term economic development. The other pillars are food and nutrition security, a robust
manufacturing sector and universal healthcare.

The lowest cost of a new house is estimated at $11,000 (KSh1.1 million), and only about
11% of Kenyans earn enough to support a mortgage. Public and private housing developers
have previously concentrated on the middle and high-income group

Currently, the poor segments of the population, who form the bulk of Kenyan society – 53%
by the end of 2020 have not been prioritised as far as affordable housing is concerned. As a
result, over 60% of urban households in Kenya live in slums where they struggle to raise $10
a month for rent.

The government pledged to build 500,000 housing units for the lower and middle-income
population segments by 2022. The units were to be sold at a price range of US$6,000 to
US$30,000. But by the end of 2021, the five-year plan had yielded only 431 units or 0.8% of
the target. Houses are to be allocated by lottery. Kenyans interested in the houses are
supposed to register online giving personal details such as employment status, household
particulars and preferred area of residence.
Rwanda
The Ministry of Finance and Economic Planning is Rwanda (MINECOFIN) was created in
1999 when the Ministry of Finance and the Ministry of Planning were combined.
The substantive Minister of Finance is Dr Uzziel Ndagijimana and is deputized by the
Minister of State in charge of Economic Planning and the Minister of State in charge of the
National Treasury. The country runs a fiscal year from July to June.
Regarding the national budget, on 15th June 2023, The Minister of Finance and Economic
Planning, Dr. Uzziel Ndagijimana presented, on behalf of the Government, the 2023/24
National Budget to the joint sitting of both chambers of the parliament with an emphasis on
Economic Recovery, Climate Change Mitigation and NST1 Projects.
The Frw 5,030.1 billion budget proposal for 2023/2024 fiscal year represents Frw 265.3
billion or 6% increase compared to Frw 4,764.8 announced in the 2022/23 revised budget.
The proposed budget is comprised of Frw 2,956.1 billion of domestic revenue which
represents 63% of the total budget, external grants of Frw 652.1 billion representing 13% of
the entire budget and external loans will amounting to Frw 1,225.1 billion or 24% of the total
budget.

Rwanda is a small but growing market, with a population of nearly 13 million people and a
GDP of $10.354 billion according to the World Bank. The economy faces a constrained
global and unfavourable domestic environment such as the war in Ukraine, high inflation and
financing tightening coupled with undone Covid-19 pandemic and other climate change
effects.
The real GDP increased by 8.2% in 2022 down from a strong post Covid-19 recovery of
10.9% reached in 2021.
Rwanda’s external debt has been driven by the investment for the National Strategy for
Transformation (NST1) which runs from 2017 to 22024 aiming to transform Rwanda into a
middle-income by 2035. As such, the government has been investing heavily in infrastructure
development.

Table 5: Total budget and Revenue for Rwanda 2022/23

Billion RWF
TOTAL BUDGET 5,030.1
Recurrent expenditure 2,909.2
 Capital expenditure 1,886.8
Equity investment shares spending 25.5
Policy lending 105.7
REVENUE
Domestic (tax and non-tax) 2,956.1
External grants 652.1
External loans 1,225.1
Domestic borrowing 196.7

Proposed Tax amendments

The government of Rwanda has proposed the following amendments in the domestic taxes.
Income tax: Reduction of the CIT from 30% to 28% with an eventual target of 20% in the
medium term. The implication is to make Rwanda competitive an position the country as a
preferred African Investment destination.
VAT: Introduction of exemption from VAT on imported and locally produced rice and maize
flour. The intention is to support food security by making essential food items more
affordable.
Zero rating of VAT on electric vehicles to encourage transition to electric cars and reduce
green-house emissions from vehicle transportation.
Excise duty: Introduction on a cap on excise duty on high-end products especially wines and
liquors.
Import duty: To protect local producers, some products will pay 35% import duty rate
instead of 25%. These include; doors, windows and their frames.

Current Affairs.
Rwanda hosted the FIBA Women’s Afrobasketball 2023 which subsequently boosted the foreign
revenue as the foreigners that came in to participate brought in foreign exchange money.

Democratic Republic of Congo

The Democratic Republic of the Congo (DRC), located in Central Africa, is bordered by nine
countries, including the Central African Republic and Southern Republic of Sudan to the
north; Uganda, Rwanda, Burundi, and Tanzania to the east; Zambia and Angola to the south;
and the Republic of Congo and Atlantic Ocean to the west. The Democratic Republic of the
Congo attained independence in 1960 and was known as Zaïre prior to 1997. It is the second
largest country in Africa and is divided into 26 provinces, with Kinshasa as its capital. The
Democratic Republic of the Congo is a presidential democratic republic, and the official
language is French. The diagnostics of this DRC’s economy predict inefficient and
uncontrolled management of public expenditure, inefficient mobilization of revenue,
although linked to certain eco- nomic and political factors. The excessive accumulation of
uncontrolled public spending is one of the most common problems in the management of
public finances in the DRC.

The Ministry charged with the duty of managing economic affairs is called the Ministry of
Economy and Finance headed by the Minister Jean Batiste Ondaye.
DRC is currently implementing the National Development Plan 2022 – 2026. Unlike other
East African member states, DRC runs a calendar year (January to December) as its fiscal
year.

Burundi
Burundi, one of the world's poorest nations, is struggling to emerge from a 12-year, ethnic-
based civil war. The country's early history and role of the three main ethnic groups - the
Twa, Hutu and Tutsi - is highly debated. Since independence in 1962 it has been plagued by
periodically violent tensions between the usually-dominant Tutsi minority and the Hutu
majority. A civil war, sparked off in 1993 made Burundi the scene of one of Africa's most
intractable conflicts. This is about the same time that the one of the world’s most gruesome
genocides happened in Rwanda, a neighbouring country.
Economy
The Ministry of Finance, Budget and Economic planning is the ministry in charge of fiscal
affairs in Burundi. The draft law on the establishment of the general budget of the State,
fiscal year 2023-2024 has been recently promulgated. It was adopted by the deputies and an
increase of 46.9% is planned compared to the previous budget. The budget deficit increased
by 269.2%. Compared to the budget of the previous fiscal year 2022-2023, the planned
revenue is projected to increase by more than 1029.187 billion Fbu which accounts for an
increase rate of 46.9%. Of total revenues, tax revenue forecasts represent 49.1%, non-tax
revenues 10.7%, project grants 28.8%, exceptional income 7.1%.
The planned state expenditure is more than 3952.997 billion Fbu against 2392.3 Fbu of the
previous year (1560.694 billion more), a rate of 68.3%. Current expenditure represents 51.3%
against 48.7% of capital expenditure and net loans.
Tax amendments: These include a 5% tax on the consumption of services and on
accommodation rates. 90% of the revenue from the rental of stands or shops in the markets
will be paid into the public treasury. The ad valorem tax on sparkling wines and liqueurs is
now reduced from 80% to 100%. The specific tax on sparkling wines, liqueurs, alcohol and
other beverages is increased from 130 Fbu to 500 Fbu per litre. A specific tax of 5% will be
applied on the cost of the plane ticket (except in case of illness and schooling). A tax of 2%
will be applied on the transport costs of the cargo. The bill also introduces an anti-pollution
penalty of 3 million Fbu per imported vehicle aged 10 years and over. There is also a 5% tax
on wealth from the acquisition of the third building.

Tanzania
The ministry was previously known as the Ministry of Finance and Economic Affairs but has
since become the Ministry of Finance from 6th July 2023 with the Planning mandate split to
form a new separate ministry known as the Ministry of Planning and Investment
The Ministry of Finance is headed by the Minister of Finance (Dr. Mwigulu L. Nchemba,
deputized by one Minister.
Regarding the legal regime, The Finance Act 2001, following the repeal of the Exchequer and
Audit Ordinance, was enacted to make better provisions for the more effective control,
management, and regulation of the collection and use of the finances of the United Republic
and for enhancing Parliamentary control and supervision of public funds and resources, and
for related matter. This is akin to the Public Finance Management Act in Uganda.
Figure 2:Sources of Revenue for FY2022/23 – 2023/24
Source of Revenue for FY2022/23 and projected revenue for 2023/24
Fiscal framework and budgeting

When it comes to fiscal management, all countries have Public Finance management laws
(the names differ but not the purpose). In Tanzania, The Finance Act 2001, following the
repeal of the Exchequer and Audit Ordinance, was enacted to make better provisions for the
more effective control, management, and regulation of the collection and use of the finances
of the United Republic and for enhancing Parliamentary control and supervision of public
funds and resources, and for related matter. The government is in the third year of the
implementation of the Third National Five-Year Development Plan for the years 2020/2021 -
2025/2026 with a theme of realising competitiveness and industrialization for effective
development.
In June 2023, the Tanzanian Parliament approved a government budget of about USD 18.6
billion that represents an increase of about 6.9% from the previous budget. 77 per cent of the
current budget is expected to be financed from internal sources with the following being the
priority areas for the government shown in Table 3.

Table 6: Expenditure allocations for FY2022/23 -2023/24

Billion shillings
SECTOR 2022/23 2023/24
Education 5,864.7 5,951.6
 Economic Development (Works, Agriculture, 9,064.1 9,427.9
Industry, Energy, Minerals, Natural resources)
Health 2,149.1 2,435.5
Water, Housing & Community Development 1,333.1 1,344.7
Defense, Public order and Safety 4,208.0 4,682.3
Social Security 2,244.2 2,345.5
General Public Services 10,581.4 11,894.6
Debt services 6,216.0 6,306.0
TOTAL 41,480.6 44,388.1
Source: Ministry of Finance

Table 4 below shows revenue sources and expenditure categories for fiscal year 2023/24. Of
all domestic revenue at least 80% is expected from tax revenue. Other sources include Local
Government Revenue, Grants and Concessional Loans, and External Concessional Loans.

South Sudan
South Sudan gained independence from Sudan on 9 July 2011 as the outcome of a 2005
agreement that ended Africa's longest-running civil war. It’s is made up of the 10 southern-
most states of Sudan, making the country one of the most diverse countries in Africa. It is
home to over 60 different major ethnic groups.
South Sudan hasn’t known peace since it became an independent nation in 2011 with more
than 70% of the country’s population (8.4 million people) in need of humanitarian assistance,
including 4.5 million children. Hunger levels are once again on the brink of famine, with over
7 million South Sudanese facing some form of food insecurity.
South Sudan’s annual budgets are supposed to be passed before end of May every year, but
the country has often made them with late endorsements. Initially, the country delayed as it
haggled over the formation of the transitional assembly, a legislative body formed after the
revitalised peace agreement signed in 2018 and which created a coalition government.
Regarding the National Budget, South Sudan hopes to finance the budget from oil sales.
According to the Minister Ngor, the total gross revenue is expected to be SSP1.8 trillion of
which at least SSP1.5 trillion will be generated from oil revenues. The rest will come from
non-tax revenues and grants. As part of revitalizing the peace agreement, an additional SSP
50 billion. According to the proposals, the increasing global oil prices are likely to push up
its earnings. A 2023 Fiscal Transparency Report by the US State Department said South
Sudan’s government has continued to mismanage revenues, with corruption and lack of
transparency a key problem.

Netherlands
Profile

Netherlands, informally called Holland, is a country located in northwestern Europe and the
largest of four constituent countries in the Kingdom of Netherlands. The country has a
population of about 17.8 million people, the 30 th most densely populated country or territory
in the world and densest in Europe; currently at least 80% of Netherlands’ population is
urban. Holland has a Total Fertility Rate (TFR) of 1.6 representing a less than average
number of children per woman needed for each generation to exactly replace itself without
needing international immigration and with a median age of 40 years, the implication is that
Netherlands has an ageing population.
With a GNI per capita of $48,000 US dollars, the Netherlands is a high income, industrialized
country and the third largest exporter of food. More than 25% of the EU’s natural gas supply
comes from the Netherlands and this has been the country’s strongest industry since the
discovery of their supply in 1959. It is also this discovery that brought problems associated
with a rapid increase in the production of gas causing a decline (neglect) of other sectors of
the economy which came to be popularly known as the Dutch Disease. Many other resource-
rich countries suffer the same “disease” to date.
Economy, Budgeting and Planning

The Ministry of Finance guards the national treasury and works towards ensuring the
Netherlands is financially healthy and prosperous. The Ministry of Finance oversees the
responsible and effective spending of government resources, makes rules to ensure a stable
financial system and oversees the quality of financial institutions. The Ministry of Finance
also works on equitable and solid tax legislation. The Dutch Tax Administration, part of the
Ministry of Finance, levies and collects taxes. Netherlands fiscal year is a calendar year that
runs from January to December.
The ministry is run by the Minister of Finance (currently Sagrid Kaag) along with the State
Secretary for Tax Affairs & Tax Administration, and the State Secretary for Benefits and
Customs.
Budget framework and Rules
The government makes agreements on budgetary policy when it takes office. Budgetary
policy is determined by the government’s expenditures and revenues plans and expected
national and international economic developments over the next four years. The current
budget rules are based on a trend-based budgetary policy and incorporate the main
recommendations of the Budgeting Framework Commission. All EU member states make a
financial contribution to the implementation of EU policy. Most of that money goes to the
agricultural sector. However, European funds are also spent on research and innovation. The
Multiannual Financial Framework (MFF) for the EU budget is adopted once every 7 years. It
sets out the maximum sums that the EU can spend each year on various categories of
expenditure. It also contains agreements on how resources in these categories are allocated
and how the EU budget is funded. A new MFF has started in 2014

Figure 3:Overview of central government revenue and expenditure 2020

Extracted from Ministry of Finance publications

Taxes
The government agreed to cut taxes and social insurance contributions by €226 million on a
structural basis to boost the purchasing power of people on low incomes, sole earners, and
families. In addition, the government committed reduce the landlord levy by €30 million a
year from 2022.

Liberia
Background

Liberia is a West African country that borders Sierra Leonne, Guinea, Côte d’Ivoire, and the
Atlantic Ocean with a population of 5 million people. One of the most ethnically diverse
countries in the world, Liberia did not fall under European colonial rule and the 19 th Century,
the United States began sending freed enslaved people and other people of color to Liberia to
establish settlements. Today, Liberia remains both a source and destination of refugees.
Liberia has a young population, a high fertility rate of 5 children per woman, and a large
youth cohort – more than 60% of the population is under the age of 25. It is also a low-
income country that relies heavily on foreign assistance and remittances from the diaspora. Its
principal exports are iron ore, rubber, diamonds, and gold with attempts to revive raw timber
extraction.
The country operates a bicameral legislature with The Liberian Senate (30 seats) and the
House of Representatives (73 seats).

Budgeting

The Ministry of Finance and Development Planning, (MFDP), was created in 2013 by an Act
of the National Legislature, in line with international fiscal management best practices. This
Ministry replaced the Ministry of Finance and the Ministry of Planning and Economic
Affairs, with the mandate to formulate, institutionalize and administer economic
development, fiscal and tax policies for the promotion of sound and efficient management of
financial resources of the government. As custodian of the country’s economy, the MFDP
combines public finance, development planning and economic management expertise and
experience to effectively manage the economy. The economy runs a calendar year (January to
December) as the fiscal year and is currently executing a 777.94-million-dollar budget.
Budget Assumptions
The following are some of the underlying assumptions that underpin the 2023 Liberian
National budget; Consumer price growth (7.8%) on average, real GDP (4.2%), Nominal GDP
growth (7.1%), and an exchange rate of 150 (L$/US$)

Figure 4:Sectoral Distribution of the 2023 Budget

Extracted from: Liberia approved Budget 2023, Ministry of Finance and Development Planning

Morrocco
Country background

The Kingdom of Morocco is a constitutional monarchy as it was since the first constitution in
1962, and in all other following constitutions of 1970, 1972, 1992, 1996 and 2011. The King
has the highest authority in the state, being the Commander of the Faithful (Amir Al
Mouminine) and highest commander of the Royal Moroccan Armed Forces. The king has
several authorities and powers such as choosing the prime minister from the political party,
which won the elections, removal of ministries and termination of the parliament and
government, if necessary. The king also heads the Supreme Council of the Judiciary. The
Parliament of Morocco is the bicameral legislature. It is formed of two parliamentary
chambers: The House of Representatives and the House of Councilors. The House of
Representatives is made up of 395 members, who are elected directly for a five-year term,
while the House of Councilors has not less than 90 and not more than 120 members. They are
elected indirectly for a six-year term. The Parliament is composed of territorial groups,
municipality councils, professional chambers, and elected representatives
Public finance legislation

The Ministry of Economy and Finance is charged with the duty of managing the economic
affairs of the country and it is led by the Minister of Economy and Finance (Mrs. Fettah
Nadia) who is deputized by the Minister Delegate to the Minister of Economy and Finance in
charge of the Budget The legal fundamentals governing the preparation and the adoption of the
finance bill are laid out in the following articles: Articles 50 and 51 of the Constitution lay out the
conditions under which parliament votes for the finance bill; Organic law relating to finance
bills which lays out the object and content of a finance bill, the way it should be presented,
voting modalities, as well specific rules for implementing it and; the decree regarding the
elaboration and the implementation of finance bills which includes provisions for the
preparation of finance bills, and outlines the modalities of its implementation by the
government
In recent years, Morocco is in the process of public finance reform, through the
implementation of the provisions of the Organic Law on the Finance Act, to establish the
management of public policies based on the principles of transparency, performance and
strengthening the quality of public services. This process culminated in the achievement of
considerable progress in the results of the Open Budget Survey for 2017; ranking Morocco 2 nd

in the Middle East and North Africa (MENA) region in terms of budget transparency.
The achievement of this progress is due, on the one hand, to the application of transparency
measures dictated by the Organic Law on the Finance Act; and on the other hand, to the
efforts made by the Ministry of the Economy and Finance to disseminate information on
public finances, as well as the publication of the Citizen Budget and the continuous
improvement of its content, making it possible to offer to citizens a summary and simplified
presentation of public policy data.

United Kingdom
The United Kingdom (also considered to be a constitutional monarchy) comprises the four
nations of England, Northern Ireland, Scotland, and Wales. The United Kingdom has a
population of over 60 million, of which approximately 84 per cent live in England, three per
cent in Northern Ireland, eight per cent in Scotland and five per cent in Wales. While it is
correct to speak of the constitution of the United Kingdom, it should not be assumed that
there is a single legal system within the constitutionally defined area. The English legal
system extends to England and Wales. Scotland has its own system of private law which is
distinct from English law. Equally, in Northern Ireland, there exists a quite distinct legal
system. Nevertheless, it is the Westminster Parliament which has hitherto legislated for each
jurisdiction and been supreme or sovereign.

Fiscal and spending framework

An understanding of the fiscal and spending framework is crucial to being able to make sense
of how the public finances are managed. The relationship between the government, acting on
behalf of the Crown, and Parliament, representing the public, is central to how public
finances are managed in the UK. While ministers seek to implement government policies and
deliver public services through their departments, they can do so only when Parliament has
granted the right to raise, commit, and spend resources.
HM Treasury (His Majesty’s Treasury) is the government’s economic and finance ministry,
maintaining control over public spending, setting the direction of the UK’s economic policy,
and working to achieve strong and sustainable economic growth. The country operates on a
fiscal year that runs from April to March.
Parliament approves the legislation that provides ministers with the powers to carry out their
policies. Through the annual supply estimates the House of Commons, in accordance with its
financial privilege in Parliament, also approves the finance necessary for the provision of
services. Parliament scrutinizes and provides oversight over government activity through the
select committee system, and has extensive powers to examine policies, expenditure,
administration, and the delivery of services

Figure 5: UK's 2023 revenue and spending priorites

Expenditure Revenue

Source: HM Treasury, United Kingdom

Brazil
The economy of Brazil is historically the largest in Latin America and the Southern
Hemisphere in nominal terms. The Brazilian economy is the third largest in the Americas.
The economy is a middle income developing mixed economy In 2022, according to
International Monetary Fund (IMF), Brazil has the 10th largest gross domestic product
(GDP) in the world and has the 8th largest purchasing power parity in the world.
In 2022, real GDP grew by 2.9 percent, largely propelled by household consumption, which
advanced 4.3 percent in the year. The labor market recovery continued, as unemployment
dropped to 7.9 percent by December 2022—the lowest level since 2015—with improved
labor conditions for women, youth, and Afro-Brazilians. Brazil’s unemployment rate
increased to 8.4 percent in January 2023, interrupting a sequence of ten consecutive retreats
in the margin, and 0.5 percentage point above the levels of December 2022, but still 2.8
percentage points below January 2022. Additionally, labor force participation stood at 61.9
percent in January 2023 (down from 62.3 percent in January 2022), and closed below
prepandemic levels (63.3 percent).
Inflation has been a persistent challenge for Brazil: its peak at 12.1 percent in April 2022 led
to a significant monetary tightening cycle that brought the policy rate to 13.75 percent in
December 2022. Fiscal consolidation continued in 2022, supported by higher revenues (8.2
percent of real growth), economic recovery, and favorable terms of trade. As a result, Brazil’s
primary surplus stood at 1.3 percent of GDP (0.6 percentage point higher than in 2021), and
public debt reached 72.9 percent of GDP (down from 78.3 percent in 2021).
In 2023, real GDP growth is expected to slow to 0.8 percent due to monetary tightening, still
high inflation, and subdued global demand. Together, these factors are likely to depress
private consumption, exports, and investment. On the fiscal front, public debt is expected to
increase gradually to 78.5 percent of GDP by 2025 due to higher refinancing costs, and
temporary higher social expenditures. Restoring sustainability still represents one of the most
urgent economic challenges for Brazil, despite the ongoing fiscal consolidation achieved
throughout 2021–22. The medium-term growth outlook is also subject to risks if total factor
productivity remains at current levels. Achieving a higher potential output trajectory would
require a revitalized impulse toward implementing structural reforms that could boost and
support both investment and productivity.
An expansion of federal social transfers continues to play a key role in providing income
support to the poorest segments of society and reducing poverty rates. These transfers
contributed to reducing poverty rates to 24.3 percent in 2022, down from 28.4 percent in
2021 (the poverty rate is based on the US$6.85/day, PPP). An overhaul of the Bolsa Família
program, including an extra benefit of R$150 per child (ages 0–5) in all recipient families and
a strong consolidation effort, is expected to contribute to a slight reduction in poverty to 23.9
percent in 2023. Further reductions may occur as the economy recovers, but they will remain
volatile in the absence of stronger investment in human capital among the less well-off.
Striking the right balance between protecting the poor and ensuring public finance
sustainability, including at subnational levels, will be a key policy challenge in the years
ahead.
Supporting the transition to a greener and more resilient growth model also remains a major
challenge. Brazil holds more than 60 percent of the Amazon rainforest, the largest tropical
forest in the world. It also has a high share of renewables in its energy matrix, but its high
exposure to climate risks and deforestation calls for a strong reform agenda to address these
challenges. Due to the recent increase in deforestation emissions, Brazil is no longer on track
to meet its national determined contribution (NDC) targets: a 37-percent reduction in
greenhouse gas emissions by 2025, and a 43-percent reduction by 2030, relative to 2005
levels. In addition, Brazil has yet to develop an integrated long-term national strategy to
achieve its climate goals. Recent reforms in the infrastructure sector, together with the federal
administration’s renewed interest in the climate agenda, provide sound opportunities for
Brazil’s green recovery and for lifting millions of Brazilians out of poverty.

India
Country profile

The country occupies the greater part of South Asia with one-sixth of the total World’s
population (approximately 1.4 billion people), making it the second most populous country
after China. India also remains one of the most ethnically diverse countries in the world and
has numerous regions, sects, and tribes. The population is largely rural but there are three
quite populous and cosmopolitan cites in the world – Mumbai, Koikata and Delhi.
In terms of economics, India has one of the largest, most diversified economies in the world,
but, because of its enormous population, its – in terms of income and per-capita income - one
of the poorest in the world. No more than one-fifth of India’s vast labour force is employed in
India’s “organized sector of the economy,” but a small fraction generates a disproportionate
share of GDP, supports the middle- and upper-class population and generates most of the
economic growth Half of all Indians still derive their livelihood directly from agriculture. The
Indian government unveiled a 45 trillion rupees ($549.14 billion) budget spending for the
next fiscal year starting April to boost economic growth, while aiming to lower fiscal deficit
before elections due next year.The aim is to have strong public finances and a robust financial
sector for the benefit of all sections of society. The following are important highlights;
a) Total federal budget spending target raised 7.5% to 45.03 trillion rupees for 2023/24
vs revised 41.87 trillion rupees for current fiscal year
b) Spending in real terms will rise less than 3% considering estimated around 5% retail
inflation for next fiscal year.
c) Capital spending seen to rise 33% to 10 trillion rupees for 2023/24
d) Proposes to hike capital outlay for railways by 48% to 2.4 trillion rupees in 2023/24
from revised 1.62 trillion rupees in 2022/23
India’s Union Budget

According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred
to as the annual financial statement, is a statement of the estimated receipts and expenditure
of the government for that particular year. nion Budget keeps the account of the government's
finances for the fiscal year that runs from 1st April to 31st March. Union Budget is classified
into Revenue Budget and Capital Budget.
Revenue budget includes the government's revenue receipts and expenditure. There are two
kinds of revenue receipts - tax and non-tax revenue. Revenue expenditure is the expenditure
incurred on day to day functioning of the government and on various services offered to
citizens. If revenue expenditure exceeds revenue receipts, the government incurs a revenue
deficit.

Capital Budget includes capital receipts and payments of the government. Loans from public,
foreign governments and RBI form a major part of the government's capital receipts. Capital
expenditure is the expenditure on development of machinery, equipment, building, health
facilities, education etc. Fiscal deficit is incurred when the government's total expenditure
exceeds its total revenue.

Figure 6: India's spending priorities for 2023

Conclusion

Figure 7: India's Revenue sources and composition for the 2023 budget
Source: Ministry of Finance, Budget Division

Conclusion

In the first section of this report, we examined the fiscal framework, providing definition and
an overview of the term. The section also includes a table highlighting relevant indicators
both demographic and economic for all fifteen economies. An analysis of these indicators to
provide a cross-comparison was attempted to show relationships between these indicators and
economic progress.
The section two provides the budget framework overview and a background of each of the
fifteen countries highlighting important allocative priorities and revenue sources. It is
observed that these budget frameworks differ largely as well as the spending priorities. What
is clear however is that the share of governance and security (or military spending) remains
very high for all countries regardless of whether they are low or high income earning – and
especially when they have civil wars like is the case with South Sudan.

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