We are borrowing heavily to pay our growing debts

It is that time of the year when Kenyans anxiously await the Budget for the next financial year that is expected to be released next week. While most of the expectations around the expenditure side is already known, it is the revenue raising measures that all are keen to know. In recent years, budget making has almost become a numbers game, with a wish list on the expenditure side and huge gaps on the financing side. This year is no different — just borrow and spend!

The Government expenditure for the 2014/15 is estimated at Sh1.779 trillion against an estimated national revenue inflows of Sh1.026 trillion, just slightly more than half the expenditure. The Treasury plans to finance Sh343 billion deficit through external and domestic borrowing. Total public debt in March this year was around Sh2.3 trillion and rising! This is before we load on recent Chinese MoUs and the Eurobond. As late as yesterday, the MPs were topping up the expenditure estimates by an additional Sh10 billion, urging the Treasury to finance it through ‘cost-saving measures, increased efficiency and proper administration’! Amazing!