File Treasury Cabinet Secretary Ukur Yatani. PHOTO| COURTESY Contrary to previous budget days which have involved pomp and colour, this year’s budget day is set to be a meek and low key event with the ensuing Covid-19 pandemic taking away part of the thunder.
A look into the statutory budget books and the proposed tax bill reveals pain not only to CS Yatani but also Mwananchi.
Yatani’s fiscal consolidation plan has been undone by the pandemic as the country now stares at a widened budget hole which in simple terms points towards more borrowing.
In just a few hours, Treasury Cabinet Secretary Ukur Yatani is expected to walk down the steps of the planning ministry to head into the National Assembly for his first budget presentation.
Contrary to previous budget days which have involved pomp and colour, this year’s budget day is set to be a meek and low key event with the ensuing Covid-19 pandemic taking away part of the thunder.
Moreover and unlike in the past, Treasury has already made the submission of crucial budget books following court orders to follow the budget cycle to the letter including the usually coveted details of the Finance Bill which bares new taxes.
A look into the statutory budget books and the proposed tax bill reveals pain not only to CS Yatani but also Mwananchi.
Fiscal meltdown
Yatani’s fiscal consolidation plan which sort to match up government expenditures to exchequer revenues has been undone by the pandemic as the country now stares at a widened budget hole which in simple terms points towards more borrowing.
The resulting turmoil has already seen the Treasury scale back on it total revenue expectations with growth for the year expected at a sub-three percent and the lowest seen since the 2008 post-poll violence.
Treasury expects total revenues to round off to Ksh.1.9 trillion through the next fiscal year to June against adversaries of widespread economic disruptions which have all but assured shallow tax head collections by the tax man.Genghis Capital Head of Research Churchil Ogutu says Treasury remains head over heels with ambition against the decimation of the tax base which the Parliament Budget Office (PBO) expects take down tax revenue down to a minimum six percent of GDP from 7.1 percent.“We are yet to see a balanced budget. The Ksh.53.7 billion stimulus for instance is still too low to anchor a rebound in growth. Expenditures will […]