Treasury CS Henry Rotich will have a taste of what to expect when he releases his Sh2.4 trillion budget for 2018/19 today as he tables the proposed budget to parliament.
Speaking yesterday during the launch of economic survey 2018, Rotich said that he is optimistic that fiscal policies put in place will support the budget which is premised on President Uhuru Kenyatta’s Big Four agenda of food security, universal health care, affordable housing and manufacturing
“Kenya has proved to be a resilient economy. Managing 4.9 per cent growth under tough operational environment witnessed last year is commendable. I will be tabling 2018/19 budget in parliament tomorrow. We expect to go beyond our economic targets next financial year,’’ said Rotich
He however acknowledged negative spillover effects brought about by interest cap to the economy, stating that the government is committed towards reviewing it.
The revenue to be shared based on the established formula for equity is Sh314 billion, up from Sh302 billion this year, while the conditional and additional grants — money meant for specific work per county — has increased from Sh24 billion to Sh58.7 billion.
This is Sh200 billion more than the Sh1.6 trillion that KRA is expected to collects in the current financial year.
This will be an uphill task for the tax man who is struggling to meet targets. KRA missed its half-year revenue collection target for 2017/18 by Sh68.3 billion.
The taxman collected Sh656.9 billion against a target of Sh701.7 billion in the period between July and December 2017, according to the National Treasury’s Post-election Economic and Fiscal report, meaning it was 6.8 per cent off-target. Last month, Rotich put KRA on notice, saying he would personally visit tax collection points to ensure optimal collection is achieved through curbs on tax evasion and leakages.