Home GENERAL NEWS Debt repayment, recurrent expenditures to gobble up huge chunk of budget

Debt repayment, recurrent expenditures to gobble up huge chunk of budget

by biasharadigest

The National Treasury CS Henry Rotich is set to table in Parliament his seventh budget for the financial year 2019/2020, but just how much of this money will be spent on development?

Out of the KSh 3.02 trillion spending plan, President Uhuru Kenyatta’s Big Four agenda development projects namely affordable housing, affordable healthcare, food security and manufacturing, will get KSh 450.9 billion.

READ ALSO: Henry Rotich’s new headache as he prepares to table another KSh 3 trillion budget

Budget 2019/20: Debt repayment, salaries to gobble up huge chunk of national budget

The National Treasury Cabinet Secretary Henry Rotich will present in Parliament the 2019-2020 national budget statement on Thursday, June 13. Photo: CitizenTV.
Source: UGC

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Rotich allocated KSh 55.97 billion for food security, manufacturing KSh 125.42 billion, affordable healthcare KSh 82 billion and affordable housing KSh 103.15 billion.

The executive arm of the government will receive a total of KSh 1.84 trillion, Parliament KSh 43.78 billion and the Judiciary 18.88 billion according to the budget estimates.

READ ALSO: Central Bank of Kenya boss warns Kenya has hit debt ceiling, can’t borrow anymore

The CS is expected to tell Kenyans how he is going to finance the budget with a deficit of more than KSh 607 billion, and with no room left for borrowing, at least according to the Central Bank of Kenya (CBK) boss Patrick Njoroge.

Rotich could nevertheless be forced to return to the domestic and international markets for more loans to plug the hole in light of the shortfall in revenue collection, a move that could further worsen the country’s public debt situation.

READ ALSO: Kenya’s 2018/2019 budget dwarfs Tanzania, Uganda and Rwanda’s combined

Kenya Revenue Authority (KRA) was to raise KSh 1.6 trillion in revenue by end of June 2019, but that target is not likely to be met considering the taxman had managed to raise just KSh 1.1 trillion by April 30, 2019.

The Treasury boss is thus expected to come up with a raft of other measures on how to compensate for the deficit to be able to effectively finance the national budget.

Although the exchequer had proposed sealing of loopholes for revenue leakage and expanding the tax base, it is not yet clear how much more would be raised or who will shoulder additional tax burden should new tax measures be introduced.

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Source: Tuko.co.ke

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