Much as East African countries are struggling to get their economies out of the hook through their budgets deficits and debt servicing appear to be the dominant phenomenon in the 2012/13 financial year.
The budgets to be tabled in each of the East African bloc’s capital today indicate that a number of fiscal measures will taken to grapple with the situation, but analysts say given the undeveloped infrastructure they have, there are no clear solutions in the horizons.
While Kenya will have to top up its USD16.4bn budget with USD6.1bn deficit, Uganda will have to battle by all means to cover the over 29 percent deficit in its USD4.06bn next financial year programme.
Analysts say Uganda's fiscal deficit, which stands at 29 percent this financial year, is likely to rise in 2012/2013 with domestic revenues sagging on the back of weak economic growth.
As for Rwanda, the overall deficit for next year is forecast at 132.4bn francs, equivalent to 2.8 percent of the GDP, compared with 77.1bn francs, or 1.9 percent, this year.
No figures were availed for the Burundi budget, but Tanzania expects to spend close to USD10bn in the coming financial year, of which about USD3.3bn will be staked for development.
What ia amazing is that at least 40 percent of this development expenditure will go into debt servicing currently hovering at USD15bn.
Kenya faces similar problems for its rising debt which is expected to balloon to USD17.6bn next year likely to result from borrowings that will definitely be against the government’s target of 45 percent to the GDP.