Home ECONOMY Government urged to invest in projects with quick returns – KBC

Government urged to invest in projects with quick returns – KBC

by biasharadigest
The government has been urged to widen the tax bracket to net new taxpayers

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The government should carefully select items to be affected by the austerity measures that were recently announced in efforts to cut unnecessary expenditure of public funds.

Economists say extreme austerity measures could negatively hurt the private sector and in the long term slow economic activity.

The government announced implementation of austerity measures by state agencies in plans to cut unnecessary expenditure as well as reign in on the budget deficit.

However, economists warn that extreme austerity measures might be counterproductive since it could starve the private sector of key revenue stream, since the government is a major customer for businesses.

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To this end, the state has been urged to widen the tax bracket to net new taxpayers. As part of its fiscal consolidation plan, the government is being advised to only invest in projects with quick returns.

Kenya has also been encouraged to revise trade agreements with regional trading partners who have allegedly devalued their currencies disadvantaging local manufacturers.

This emerged as the World Bank projected that Kenya’s economy would grow by 6.2 percent this year powered by a strong agricultural sector and reduced tensions between the US and China as well as middle east countries.

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