It appears that the bigger concern for the government is how to increase its revenues to reduce the mismatch with its expenditures. The sharp decline in government revenues as a result of the negative impact of the pandemic on economic activity and tax cuts, particularly on individual taxpayers means that we should expect a wider fiscal deficit for as long as the current economic conditions persist.

The exchange rate remained stable due to the narrowing current account deficit, from 5.0% of GDP in 2018 to 4.9% in 2019 thanks to increased transfers. Foreign exchange reserves rose from $9 billion in 2018 to $9.4 billion at the end of August 2019, equivalent to 6 months of imports, or more than the East African Community convergence criterion of 4.5 months. The fiscal deficit is estimated at 7.5% of GDP in 2019, down from 8.8% in 2017, thanks to ongoing fiscal consolidation and greater domestic resources mobilization.