Seven Expected Highlights of the 2013/2014 budget.

The 2013/2014 budget is expected to be read on Thursday by Treasury Secretary Henry Rotich. Some of the expected highlights will be:

1. Containing the budget deficit.

Will the government balance its books? Will it have to result to extra borrowing from the markets and donors? The Kenya revenue Authority- KRA, has been falling short of its targets for some time now, and will collect just under a trillion shillings for the fiscal year. However, the budget expenditure is expected to be about 1.6 trillion shillings. Where will the extra money come from?

2. County funds allocation.

How much will the national government allocate to the counties. The allocation amount will likely point to government’s commitment to the realization of devolution. If the counties are not allocated enough money, the failure at the grassroots level could be catastrophic.

3. Reviving the agricultural sector.

Even though ICT is touted as a great enabler, farming and agriculture still remains the major contributor to Kenya’s economy, and one likely to contribute the most in lifting millions of Kenyans
out of poverty. The government has promised to revive the national Cereals and Produce Board- NCPB, open markets for agricultural products, improve transport for farmers, and put at least a million acres of land in arable areas under irrigation.

4. Education.

President Uhuru Kenyatta has reiterated his promise for the free laptops for Standard one children next year in January. The teachers will also need additional salaries, as will university lecturers. The quality of free primary education has also been called into question.

5. Healthcare.

As free maternity admission to public hospitals begins to take place, the government will need to ensure the whole public health system is revamped, and health professionals to be better remunerated.

6. Security.

Kenya’s engagement in Somalia is likely to take a while longer. The menace of terrorism in Kenya is yet to be contained. There are splinter militia groups within various parts of Kenya. The police force and the security apparatus in general seems incapable of containing the runaway criminality in Kenya. How will the budget allocation cater to that?

7. Containing Inflation.

How will the budget finance the two levels of government? It can only mean either an efficient tax collection system that widens the tax base as far as possible, or increasing taxes, or borrowing from the local and international market through donors and development partners. Increase in VAT taxes of common goods like tea, bread and maize could hit the common mwanachi particularly hard.

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