MPs have termed President William Ruto’s Sh3.9 trillion budget overambitious and that which would stretch the country’s revenue raising measures.
Speaking after the budget presentation, lawmakers raised concerns with how the multi-trillion budget will be financed.
Treasury Cabinet Secretary Njuguna Ndungu on Thursday presented 2024/2025 budget highlights in Parliament.
Taxes are projected to realise Sh2.9 trillion of the budget while the government will go borrowing for Sh600 billion.
The rest of the deficit—according to the budget estimates—will be realised from donors and appropriation in aid from government services.
Kasarani MP Ronald Karauri doubted whether the tax projections are realistic.
According to the first-term MP, the revenue raising measures are unrealistic and may not bridge the gap.
"I am not sure whether the revenue raising measures will raise the deficit. I do not trust the revenue raising measures, they have been unable to widen the tax base,” Karauri said.
Homa Bay Woman Representative Joyce Bensuda while dismissing the the Sh3.9 trillion as overambitious questioned how it will be financed.
She said the budget will mean more taxation on Kenyans who are already overburdened.
“This budget is unsustainable and unrealistic for Kenyans. You want to tax a country that is unemployed, a country that is not healthy, no drugs in hospital, the nurses are out in the streets, our JSS teachers are sacked yet you are talking of a Sh4 trillion budget? We are just joking,” Bensuda said.
This is even as the minority side threatens to shootdown the Finance Bill 2024 if it does not reflect the views expressed by Kenyans during the just concluded public participation sessions.
Finance Bill is the instrument that spells out the revenue raising measures the government intends to use to finance the budget.
The committee chaired by Molo MP Kuria Kimani is retreating in Naivasha to write a report.
The report will be tabled and discussed in Parliament next week.
Minority Leader Opiyo Wandayi said his troops have been whipped to ensure they oppose the Bill if it carries punitive taxes.
“We are giving the Finance Committee until Monday to have considered the submissions of Kenyans during public participation. We expect the feelings of Kenyans to reflect in the report. If the report does not meet our expectations, then as Azimio we are going to mobilise to reject that Finance Bill,” Wandayi said.
“This time round, we will do things differently. We have already put on notice members from the Azimio coalition to be physically present at the time of debating and voting on the Finance Bill. We have directed them not to engage in any unnecessary travel outside the country.”
But Sirisia MP John Waluke defended the budget dismissing those doubting the revenue raising measures saying the government has demonstrated capability to meet the revenue target.
“With the tax measures in place, the government will be meeting its target towards financing the budget. It is also a fact that we have been servicing expensive loans but there is hope,” Waluke said.
Emurua Dikir Johana Ngeno while backing the budget said the estimates will facilitate construction of student hostels which has been a challenge to many public universities.
“For me, I am happy that they have allocated the money that we suggested during our public participation forums,” the National Assembly’s Housing Committee chairman said.
