Only real austerity will save nation from going into massive debt

The just-concluded summit between the heads of our two levels of government couldn’t have come at a better time. It’s that time of the year when our governments start preparing their budgets for the next financial year, usually focused more on their planned expenditures rather than revenues. It is often assumed in our budgets that revenues are a matter of course, and will be collected. If it is insufficient, we borrow to finance the gap, period! This assumption is gaining currency even among the county governments, with most counties clamouring for powers to borrow without hindrance.

This nation will likely be brought to its knees not by the negative ethnicity in its political rhetoric and the corruption culture but by the insatiable appetite of our public sector to live large. If we keep the course, our lenders may place us on the table for auction soon. We are neck deep in debt, and we are borrowing impulsively but the taxpayers have not always felt the benefits of the massive borrowing. This financial year, Treasury will spend Sh483 billion to service our debts; this amount is nearly a half of our annual revenue collections.