National Treasury Cabinet Secretary Henry Rotich is Thursday afternoon expected to present a 3.07 trillion shillings 2018/2019 national budget.
This is expected to be financed through tax collection, grants and borrowing. Experts have however warned against excessive borrowing saying that the country is already in huge debt.
Kenya’s budget has increased from 1.6 trillion shillings in 2013/2014 to the projected 3.07 trillion shillings in the next financial year.
The increase has been to support mega infrastructural projects such as roads, the standard gauge railway and dams.
The 2018/2019 fiscal year is expected to prioritize the big four agenda that focusses on manufacturing, affordable housing, universal health care and food security.
A bulk of the cash to finance the budget will be from tax collections. The National Treasury plans to raise 1.74 trillion from ordinary revenue through various taxes.
CS Rotich is banking on deployment of technology to broaden the tax base. This has received the backing of the national assembly with legislators saying they want the list of zero rated products reduced.
To finance the budget, the national treasury expects appropriation in aid to take care of 180 billion shillings while development partners will avail 47 billion shillings as grants.
The national treasury expects to borrow the remaining 562.75 billion shillings both locally and from the international market.
Budget estimates indicate that Kenya would spend 29 percent of the next budget that is 870.62 billion shillings on servicing debts.