- The budget plan for the upcoming fiscal year has been condensed to accommodate the general election to be conducted on August 9.
- Kenya plans to spend Sh3.2 trillion in the upcoming financial year
Image: EZEKIEL AMING'A
Kenyans have until March 22 to give proposals on policy and tax measures to be included in the 2022/23 national budget.
National Treasury principal secretary Julius Muia said the proposals should be centred on the broader areas including measures to enhance economic resilience and enhance economic recovery.
Others are suggestions on how to fast-track implementation of the Big 4 Agenda, revenue mobilisation, business recovery, job creation, and debt sustainability.
"National Treasury Cabinet Secretary is expected to present 2022/23 budget in the National Assembly on April 7. While finalising the statement, he appreciates contribution from members of the public,'' Muia said.
The budget plan for the upcoming fiscal year has been condensed to accommodate the general election to be conducted on August 9.
The budget plan for the financial year starting July 1 is expected to be outlined amid volatility in both the global and local social-economic environment.
The country which is slowly recovering from the Covid-19 pandemic that saw it record negative economic growth in 2020 is riddled with the high cost of living and debt crisis that threatens to break the set ceiling.
Prices for basic household commodities including food and gas have skyrocketed to new highs, with February inflation hitting 5.78 per cent.
Yesterday, fuel and gas suppliers reviewed prices upwards, with a 6-kg gas cylinder now retailing at an average rate of Sh1,500 while the 13-Kg one is now going for close to Sh3500, an increase of Sh1,500.
This is expected to be worsened by the election-induced inflation and the ongoing global volatiles, especially the ongoing Russia/ Ukraine crisis.
Although the exchequer insists that the country's debt is sustainable, economic experts think otherwise.
The country's total public debt was captured at Sh8.2 trillion in December, a trillion shy from the set ceiling of Sh9.1 trillion.
Parliament is considering reviewing the ceiling to between Sh13 trillion and Sh15 trillion. The National Treasury failed to comment on this yesterday.
The exchequer has proposed an overall expenditure and net lending of Sh3.23 trillion, but this could go up as a result of adjustments.
The current financial year's budget is Sh3.6 trillion having shot up from a proposed Sh3.02 trillion.
Recurrent expenditure which includes salaries continues to take the lion's share of government spending and is projected to consume an estimated Sh2.14 trillion (15.6 percent of GDP).
Development expenditure will amount to Sh712 billion.
To help meet the expenditure, Kenya Revenue Authority is expected to collect Sh2.14 trillion up from Sh1.99 trillion.
Total revenue including Appropriation-in-Aid (A-i-A) is projected at Sh2.41 trillion.
The government is expected to borrow at least Shh776 billion to meet the budget deficit.
This will include Sh368 billion from foreign markets and Sh408 billion in the domestic market.
Proposed total debt financing for the next financial year is however lower than the current year ending June 30, where proposed borrowing was at Sh929 billion.