Thursday, 13 June 2013 08:33

Kenya's Ksh 1.6 Trillion Budget To Be Read Today Featured

Finance Cabinet Secretary Henry Rotich will this afternoon deliver the Budget estimates for the financial year 2013/2014.

In what is Kenya's largest budget in history, Rotich will outline how the government intends to finance its 1.6 trillion shilling budget.

Rotich will face an uphill task of outlining how the government will raise 216 billion shillings, approximately 10% of the total budget, which will go to the repayment of the government debt.

The 47 County Governments will be allocated 210 billion shillings each to fund their operations while the Teachers Service Commission (TSC) will get the second third largest allocation of 143.1 billion shillings.

The Health sector will receive 34 billion shillings while the Agriculture sector will receive 38.9 billion shillings.

The debt burden is expected to increase by a further 163 billion shillings this year as the government seeks to bridge its budget deficit.

The increase in borrowing is also expected to impact on the local credit market with the government competing for credit with the private sector.

Last year the government borrowed over 80 billion shillings from the domestic market.

Experts have argued that the government might have to expand the tax bracket to include basic commodities which are currently zero rated.

However, the Consumer Federation of Kenya - COFEK - has already threatened to move to court in case the VAT Bill proposing to raise the tax bracket is tabled in Parliament and approved.

By Maureen Murimi