Indicator 17.1.2 Proportion of domestic budget funded by domestic taxes

PROPORTION OF DOMESTIC BUDGET FUNDED BY DOMESTIC TAXES

Goal 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

17.1: Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection

17.1.2: Proportion of domestic budget funded by domestic taxes

2022

17.1.1

Kenya National Bureau of Statistics

Kenya National Bureau of Statistics

Director Macroeconomics Statistics

Directorate of Macroeconomics Statistics

Production and Dissemination of Macroeconomics Statistics

+254-202-911-000

30266-00100, Nairobi- Kenya

macro@knbs.or.ke

DEFINITION, CONCEPTS, AND CLASSIFICATIONS

Proportion of domestic budget funded by domestic taxes

Domestic budget is an institutional unit of the general government sector particularly important in terms of size and power, particularly the power to exercise control over many other units and entities.

Percent (%) of GDP

GFSM 2014, ISIC Rev. 4, Systems of National Accounts

DATA SOURCE, TYPE AND DATA COLLECTION METHOD

The actual and recommended sources of data for deriving this indicator are the fiscal statistics reported to the IMF’s Statistics Department. KNBS data is reported in the Economic Survey from Administrative

Administrative Data

Annual Economic Survey

End of April of every year

Stakeholders (Administrative Data)

Kenya National Bureau of Statistics

According to the Statistics Act of 2006, Kenya National Bureau of Statistics is mandated to collect, compile, analyze, publish and disseminate official statistics for public use

No major issue in terms of the feasibility and suitability in reporting the indicator.

GFSM 2014,

GFS budgetary central government revenue series - collected in Table 1 of the annual GFS Questionnaire provided to all countries - will be combined with series on budgetary central government expenditure (actual execution of the main budget) on “expense” plus the “net acquisition of non-financial assets”, as defined in GFSM 2014). GFS Expenditure series are reported by the economic classification in Tables 2, and 3 (items under code 31). Alternatively, for those countries that report total expenditure according to the functional classification (COFOG) in GFS Table 7, a similar calculation can be made. The Proportion of domestic budgetary central government expenditure funded by taxes will be calculated as (Taxes / Expenditure expressed as a %) using the following data series: An Example: Calculation of SDG Indicator 17.1.2

Consistency across countries will be ensured through the underlying structure of the IMF GFS database and application of one simple mathematical formula to make computations on the country reported source data used to produce the indicator (no adjustments and/or weighting techniques will be applied). Mixed sources are not being used nor will the calculation change over time (i.e., there are no

The Bureau is ISO certified and also carries out its own internal audit that ensures that high quality statistics are produced

The Bureau adheres to KeSQAF that ensures that statistics produced meets the needs of the users

The Bureau has a quality management system in place that ensures that data produced meets the set standards

Data availability:

Classification of the indicator into one of the three tiers: We recommend that 17.1.1 (like 17.1.2) remain classified as Tier 1: The indicator is conceptually clear and internationally agreed standards for compiling components and aggregates are available. The underlying data are regularly produced by countries, and there is current data available. From the IAEG-SDGs Tier Classification description at https://unstats.un.org/sdgs/iaeg-sdgs/tier-classification/, a key criterion is that “data are regularly produced by countries for at least 50 percent of countries”. The IMF GFS database, with 130+ regular annual reporting countries using the same reporting format meets this key criterion. Apart from conflict countries, all IMF member countries produce revenue (and expenditure) data for surveillance purposes. In recent rounds of soliciting annual GFS series from countries, we have specifically encouraged those countries that were non-reporters over the past few years to (at a minimum) provide the key revenue and expenditure series needed to monitor 17.1.

Disaggregation:

The detailed GFS revenue classification structure in the annual questionnaire that is used by countries to report data allows for compiling 17.1.1. The four types of revenue: Taxes, Social contributions, Grants and Other revenue are further disaggregated in the annual GFS questionnaire in order to encompass all possible forms of revenue administrations. Taxes are disaggregated as follows:

Social contributions differentiate between social security and other social contributions, as follows:

Grants can be disaggregated by source as follows:

And Other revenue is disaggregated into five main types, with additional component detail as follows:

Sources of discrepancies:

Where the relevant aggregates and component detail in series disseminated by the national authorities are found to differ from GFS due to unreported revisions, the IMF Statistics Department will solicit revised time series in GFS format from the national authorities.

The GFSM 2014 is available at http://www.imf.org/external/np/sta/gfsm/. A series of videos that discuss the GFS analytical framework are available at: IMF Statistics E-Learning Videos - YouTube. Although not foreseen under the reporting of 17.1.1, analysts can also use the detailed IMF GFS Revenue database to supplement this indicator with measures of direct, indirect and capital taxes (see GFSM 2014, Annex to Chapter 4).