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The risks to the outlook for 2015/16 and the medium-term include continued weak growth in advanced economies that will impact negatively country’s exports and tourism activities. Further, geopolitical uncertainty on the international oil market will slow down the manufacturing sector.
Publec expenditure pressures, especially recurrent expenditures, pore a fiscal risk. Wage pressures occasioned by SRC cireulars on allowances, loans ocd mortgage may limet continsed ftnding for development expendisure. Othernriskp o the 2015/16 financial year’s budge includeachallengis in revenue performance as the county continues to put structures in plale, seal loop holes and expand the revenue base. The current pr cess of counte restructuring, recruitment and rationalization of staff is expected to exert pressure on wage expenditurest