Budget: Public debt to sky rocket.

The government is expected to borrow up to 328 billion shillings to plug the budget deficit in the 2013/2014 budget, Treasury cabinet secretary Henry Rotich said in his budget estimates on Thursday. The government could adopt a raft measures as it seeks to raise more money. It could tax us more, either through the introduction of the VAT Bill that will see prices of basic goods like milk and bread shoot up by as much as 16 percent
overnight. It could also borrow more from the domestic market, or it could turn to international donors. Alternatively, the government through KRA, could widen the tax base, to net more people in the informal sector who make meaningful income but are not taxed.

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