*Highlights: Uhuru’s Last Budget Verse’s His First Budget*
The spending pressure by the Jubilee administration for the years in power, is driven by infrastructure projects which requires high capital, higher wages and salaries and interest payments on loans borrowed externally.
According to data collected from National Treasury Budget Policy Statements, recurrent spending has increased by 182 per cent from 780.7 billion shillings in 2013 to 2.2 trillion.
On the other hand, interest payments on loans have increased by 470 per cent. Interest repayment on loans alone is at 687.9 billion shillings.
Uhuru’s last budget verse’s his first budget. The last budget is estimated at Kenya shillings three point three ( 3.3 )trillion which is 136 per cent increase in comparison to his first budget which was estimated at one point four (1.4) trillion shillings in 2013.
The Treasury despite everything else continues to set higher targets on revenue collction for the Kenya Revenue Authority even as it keeps on having more deficit with the budget.
For the financial year 2022/2022, the total revenues are estimated at Kenya shillings 2.4 trillion out of which only 2.1 trillion shillings is ordinary revenue ( tax collection).
In 2013 ordinary revenues were estimated at 947.8 billion shillings but currently the same is projected at Kenya shillings one (1) trillion.
The growing deficit has led to more borrowing with net borrowing having increased from 33.4 billion shillings to 846.1 billion shillings that is projected as part of 2022 budget estimates.
How the projected borrowing for this year’s budget is lower in comparison to what was projected last year. But, actual borrowing for the 2022/2023 budget is likely masked by the high revenue collection projection.
The National Treasury is expected to announce new tax measures and proposals this week geared towards growing collections by the Kenya Revenue Authority.
