politics
finance and economy
Budgeting for the bandit’s economy;
by admin on | 2024-06-02 22:37:21 Last Updated by admin on 2024-10-18 08:29:40
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And I was very angry when I heard their cry and these words. Then I consulted with myself, and I rebuked the nobles, and the rulers, and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them… Also I said, it is not good that ye do: ought ye not to walk in the fear of our God because of the reproach of the heathen our enemies? I likewise, and my brethren and my servants might exact of them money and corn: I pray you, let us leave off this usury. Restore, I pray you, to them even this day, their lands, their vineyards, their olive yards and their houses, also the hundredth part of the money, and of the corn, the wine, and the oil, that ye have exact of them. Nehemiah 5:6-7,9-11
The government does not produce or sell anything. Its purpose is to create an enabling environment for citizens to conduct economic activities through which they earn a livelihood. Citizens contribute a portion of their income in the form of taxes, which the government then uses to provide common services like roads, railways, airports, hospitals, schools and markets to sell agricultural produce. Also the government has staff on its payroll to ensure these services run properly. Kenya’s Tax Czar The Autobiography of MG Waweru In a commentary published by the Business Daily on January 16, 2023 Finance Cabinet Secretary Prof. Njuguna Ndung’u opined that economic pointers indicated that 2023 was likely to be the most difficult year for the global economy in terms of recovery prospects. Noting the World Bank’s observation that the poorest countries were spending the highest share of their revenues on debt-service payments, Prof. Ndung’u stated that the Kenyan government would pursue fiscal consolidation to ensure debt sustainability measures including reduction of the overall fiscal deficit and reduce the pace of debt accumulation over the medium term as well as an effective liability management strategy.He added: The policy will be supported by enhanced revenue mobilisation and instituting austerity measures on non-priority recurrent expenditure as well as redirecting resources to finance priority growth supporting programmes… In Kenya, food, security and climate change have led to severe crises – increased poverty, widening inequality across regions and households and increased incidents of social conflicts due to competition for resources, like water resources. This has been compounded by the supply disruptions, inequality, poverty and social conflicts. The Country’s FY2023/2024 Medium-Term Budget is being prepared against that background. Kenya’s economy is projected to grow by 5.5 percent in 2023 and above 6.0 percent over the medium term. This growth will be reinforced by the Government’s BottomUp Economic Transformation Agenda geared towards economic turnaround and inclusive growth. Avenues of inclusive growth include creating jobs and agroprocessing for export. This can only work if markets are properly governed. As we now know the Finance Act, 2023 introduced increased taxes considerably, introduced new taxes and levies whilst reducing spending on numerous social benefits and safety nets. Generally, this made life difficult for Kenyans captured as follows by Anthony Mwangi the Chief Executive Officer of the Kenya Association of Manufacturers:- With mwananchi still recovering from the adverse impact of the fiscal changes imposed in 2023, we strongly believe that the focus as a country must be on supporting the manufacturing industry to reduce the cost of locally produced products and services, to drive job and wealth creation, boost productivity, as a result, it will lower the cost of living for mwananchi and create prosperity for Kenya. To be sure, it is obvious that the Government has not kept the promises made by Prof. Ndung’u in January, 2023 in at least five respects. First, the government has not instituted austerity measures on priority recurrent expenditures including presidential extravagance and political projects like employment of Cabinet Administrative Assistants (CAS). Secondly, resources have not been directed to finance priority growth – supporting programmes such as agriculture, industry, tourism and completion of pending infrastructure
He added: The policy will be supported by enhanced revenue mobilisation and instituting austerity measures on non-priority recurrent expenditure as well as redirecting resources to finance priority growth supporting programmes… In Kenya, food, security and climate change have led to severe crises – increased poverty, widening inequality across regions and households and increased incidents of social conflicts due to competition for resources, like water resources. This has been compounded by the supply disruptions, inequality, poverty and social conflicts. The Country’s FY2023/2024 Medium-Term Budget is being prepared against that background. Kenya’s economy is projected to grow by 5.5 percent in 2023 and above 6.0 percent over the medium term. This growth will be reinforced by the Government’s BottomUp Economic Transformation Agenda geared towards economic turnaround and inclusive growth. Avenues of inclusive growth include creating jobs and agroprocessing for export. This can only work if markets are properly governed. As we now know the Finance Act, 2023 introduced increased taxes considerably, introduced new taxes and levies whilst reducing spending on numerous social benefits and safety nets. Generally, this made life difficult for Kenyans captured as follows by Anthony Mwangi the Chief Executive Officer of the Kenya Association of Manufacturers:- With mwananchi still recovering from the adverse impact of the fiscal changes imposed in 2023, we strongly believe that the focus as a country must be on supporting the manufacturing industry to reduce the cost of locally produced products and services, to drive job and wealth creation, boost productivity, as a result, it will lower the cost of living for mwananchi and create prosperity for Kenya. To be sure, it is obvious that the Government has not kept the promises made by Prof. Ndung’u in January, 2023 in at least five respects. First, the government has not instituted austerity measures on priority recurrent expenditures including presidential extravagance and political projects like employment of Cabinet Administrative Assistants (CAS). Secondly, resources have not been directed to finance priority growth – supporting programmes such as agriculture, industry, tourism and completion of pending infrastructure
