Next month marks the dawn of another financial year and as usual, the government has a budget for the year in place.
The focus of all eyes will this afternoon be at the National Assembly where the Treasury Cabinet Secretary is expected to table his budget proposals for the 2019-20 financial year. Just like in the previous budget reading sessions, Kenyans will be all ears with the optimism that the cost of living will be a bit more bearable.
Economists and other financial scholars have incessantly opined that despite the reported economic growth in Kenya, the government has not enough machinery and mechanisms for optimal resource mobilisation.
A rough study on the performance of the various sectors of the economy paints a picture of a thriving economy but when we open the lid of the national revenue kitty, there is not much to reflect this. This means that despite the thousands of income-generating transactions that take place in a day, very little finds its way to the government coffers.
Even as we plan to start a new financial year, not all is lost. We have the potential as a country to change the status quo and be able to finance our budget to the very end without breaking much sweat. To achieve this, our policy makers need to think a little out of the box and table revenue enhancement initiatives that can change the narrative of missed revenue targets. Members of the public should also be invited for contributions on this matter.
Early this year, Kenya Revenue Authority launched a three-year strategic plan. It aims at exploring virgin potential revenue reservoirs to ensure there is more revenue for the government without overburdening the already taxpaying sectors of the economy.
