The National Treasury Cabinet Secretary Hon Henry Rotich is set to table in Parliament his seventh budget for the fiscal year 2019/2020, but just how much of this money will be spent on development projects?
Out of the KShs 3.02 trillion spending plan for the budget, President Uhuru Kenyatta’s Big Four agenda development plans, namely manufacturing, affordable housing, affordable healthcare, and food security, will get KSh 450.9 billion.
Rotich allocated a total of KSh 55.97 billion for food security, manufacturing KShs 125.42 billion, affordable healthcare KShs 82 billion, and affordable housing scheme KShs 103.15 billion.
The executive arm of the government will earn a total of KShs 1.84 trillion, Parliament KShs 43.78 billion and the Judiciary arm Kshs18.88 billion according to the budget estimates.
The CS is presumed to tell Kenyans how he is going to finance the budget with a deficit of more than KShs 607 billion, and with no room left for funding of more debts, at least according to the Central Bank of Kenya (CBK) chief Patrick Njoroge.
Rotich could nonetheless be forced to return to the domestic and international exchanges 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.
Kenya Revenue Authority (KRA) was to raise KShs 1.6 trillion in revenue by the end of June 2019, but that budget target is not likely to be met acknowledging the taxman had managed to raise only KSh 1.1 trillion by April 30, 2019.
The Treasury chief is thus expected to come up with a raft of other propositions on how to compensate for the shortfall to be able to finance the national budget adequately.
Although the exchequer had proposed sealing of the open loopholes for revenue leakage and increasing the tax base, it is not yet very clear how much more would be raised or who will shoulder extra tax burden should new tax measures be introduced.