NAIROBI (Reuters) – Kenya will cut its budget deficit to 5.6 percent of GDP in its 2019/20 (July-June) fiscal year from a revised 6.1 percent of GDP in this fiscal year, the Treasury said in a draft budget summary sent to parliament this week.

The East African nation will borrow 324.3 billion shillings ($3.21 billion), equivalent to 3.0 percent of GDP, from abroad during the fiscal year and 289.2 bln shillings, or 2.7 percent of GDP, from the local market, the document showed.

The government aims to reduce the overall budget deficit to 3.8 percent of GDP in the 2022/23 fiscal year, the Treasury said.

The government has come under fire for ramping up its borrowing since 2013 to fund a range of infrastructure projects like roads.

The economy was likely to expand by 6.1 percent this year, from 6.3 percent last year, the Treasury said in the budget summary, attributing that benign forecast to stable economic fundamentals and the farming sector.

($1 = 101.1000 Kenyan shillings)

Reporting by Duncan Miriri, Editing by Gareth Jones, William Maclean

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