Treasury plans to raise Sh1.74 trillion from ordinary revenue, which is the money the taxman will collect through the various taxes Kenyans will pay among them the income tax, value added tax and custom tax. Another Sh179.9 billion is expected to be raised from Appropriations in Aid (AiA), which is the income that a Government agency is allowed to collect and retain by charging for their various services.
Treasury also hopes to receive grants of Sh47 billion from donor agencies and other development partners. It plans to borrow Sh562.7 billion from both the local and international lenders. This brings the total revenue to Sh2.5 trillion. With this revenue, the Government did not explain where the remaining Sh540 billion will come from to balance its budget.
Contacted for comment, Mr Rotich said he would provide full details of how it treats the financing gap when he presents his budget statement in Parliament today. But the Institute of Economic Affairs (IEA), a public policy think tank, says Treasury should be honest with Kenyans on the actual size of Kenya’s budget.
Institute of Economic Affairs (IEA) Chief Executive Officer Kwame Owino says the total expenditure for the financial year starting July adds up to Sh3 trillion.