Inside Ruto’s Sh3.6trn budget statement for 2023/24 financial year; Winners and losers
Inside Ruto’s Sh3.6trn budget statement for 2023/24 financial year; Winners and losers
Budget statement for the 2023/24 financial year; Winners and losers.
The National Treasury on Wednesday published the draft 2023 Budget Policy Statement (BPS) for public comments, and the key policy document now reveals Ruto’s priorities in his first budget that covers the financial year 2023/24.
A suite of new tax measures will help the Treasury raise Sh2.89 trillion in revenues in the 2023–24 fiscal year, which is a 15.1% rise from the projected Sh2.51 trillion in revenue collection in the prior fiscal year.
The Treasury expects to collect Sh2.89 trillion in revenues in the 2023/24 financial year to fund this spending, a 15.1 percent increase from the estimated Sh2.51 trillion to be collected in the current financial year.
“The government will scale up revenue collection efforts by the KRA to Sh3 trillion in the financial year 2023/24 and Sh4 trillion over the medium term,” said the Treasury.
In order to stop revenue leaks, Treasury has stated that it will map all rental properties.
Those property owners who do not pay income tax to the government are a target.
Since consumers already face a high cost of living, the government has eliminated subsidies on essential goods like fuel and electricity in an effort to minimize the fiscal deficit and has further committed to reducing tax exemptions.
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Ruto’s priorities in the 2023/24 budget statement
President Ruto has prioritized education, health, infrastructure, and national security, apportioning a significant increase in their budgets and underscoring the pivotal role he expects the sectors to play in enhancing Kenya’s socio-economic growth.
Ruto also targets to accelerate funding for the fertiliser subsidy to boost crop production and plug the growing deficit that has seen the government temporarily waive duty on maize, sugar, and rice imports.
“The economy is operating under tight fiscal constraints. This has warranted tough choices including suspension of subsidies on fuel, electricity, and food to ensure that scarce resources are directed towards priority areas … while ensuring that debt levels are sustainable,” Treasury said.
The exchequer said the implementation of its programmes during the new fiscal year will stimulate economic recovery to a growth of 6.1 percent in 2023 up from a projected growth of 5.5 percent in 2022.
Winners and losers
M-Pesa users, landlords, and consumers are among the biggest losers in President William Ruto’s Sh3.641 trillion budget that seeks to introduce new tax measures and end state-funded subsidies.
Winners
The rail and marine transport dockets have emerged as the biggest winner after securing an additional Sh57.04 billion, which will take its spending to Sh247 billion up from Sh189.96 billion.
Education has been allocated Sh539.9 billion, an increase of Sh13.96 billion from the current Sh525.94 billion, with the government eyeing the hiring of 30,000 teachers.
Education has been allocated Sh539.9 billion, an increase of Sh13.96 billion from the current Sh525.94 billion, with the government eyeing the hiring of 30,000 teachers.
Parliament will get Sh39.88 billion, which is an increase of Sh1.41 billion, while the Judiciary, which has called for increased funding from the exchequer, will get Sh19.46 billion, an increase of Sh18.29 billion.
Other big winners include Infrastructure which will get Sh224.06 billion up from Sh211.4 billion, Health will get Sh140.6 billion up from Sh126.35 billion and Interior which will receive Sh146.81 billion up from Sh143.2 billion.
Losers
The Independent Electoral and Boundaries Commission (IEBC) will be the biggest loser after its budget was cut by Sh17 billion to Sh4.68 billion from Sh21.68 billion.
Energy has also emerged as a major loser, with its spending cut by Sh7.35 billion to Sh77.79 billion from Sh85.14 billion, while Public Service will have to do with a budget of Sh22.1 billion compared to Sh25.18 billion it was allocated in the current financial year.
Another loser is Crop Development, which has been allocated Sh26.13 billion compared to Sh35.7 billion this year, and Housing, which has been given Sh16.94 billion down from Sh20.04 billion.
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