Key numbers in 2018/19 Budget


Key numbers in 2018/19 Budget
Treasury CS Henry Rotich carries a briefcase containing the Government Budget for the 2013/14 fiscal year [Photo: Courtesy]

Overall the Ksh3.074 Trillion budget has grown by about 10.83 percent from the 2017/18 financial year which was Ksh2.77 Trillion.

Here’s how the money will be split to various institutions:         

 

Entity                                      Allocations

National Government              Ksh.1. 6 Trillion

Consolidated Fund Service      Ksh. 962 Billion

County Allocation                    Ksh. 372 Billion

Parliament                                 Ksh. 42 Billion

Judiciary                                  Ksh.17 Billion (Proposed to be slashed by Ksh2.5 Billon)

 

Budget Expenditure of the National Government              

Recurrent Expenditure           61.01%

 (The wage bill (salaries) estimated at Ksh 416.86B. This figure represents 32.42% of total allocation towards national government)

 

Development                           38.99%

Key Development spends:

Department of infrastructure Ksh 112.99 Billion

Department for Transport Ksh 90.42 Billion

Department for Energy Ksh 59.89 Billion

 

Public Debt Obligations                

-Ksh870 billion has been set for debt repayment

-This represents a 25.79% compound growth from 3 years ago

-This will see the debt service-to-revenue ratio grow to 51.56%

-Debt service ratio threshold is 30% (Sustainable debt)

-Kenya’s debt obligation expected to hit an historic Ksh5 Trillion by June 2019

 

Financing the budget

Ordinary Revenue (mainly tax generated) is expected to be at Ksh1.74 Trillion

To achieve this, Rotich has proposed Income Tax Bill 2018 to do the following:

i). increase in individual tax rate to annual income above Ksh9 million from 30% to 35%;

ii). increase in corporate tax rate to companies with annual taxable income exceeding Ksh 500 million from 30% to 35%

iii). Presumptive rate of 15% of the single business permit fee issued by a County government (This targeting small business)

iv). the bill also seeks to move some items from zero rate to exempt. This is likely to push the cost of a number of basic goods up: largely medicine, fuel, and wheat and maize flour products

Deficit Financing                  

All revenue accounted for the budget still has a Ksh562 Billion deficit.

-This will require more borrowing to fund.

-Foreign and domestic borrowing will be put to use to bridge the gap.

 County Allocations               

County Governments will be allocated Ksh372 Billion. This broken down as follows:

i.) Equitable Share                              Ksh314 Billion

ii.) Conditional (Natl Govt rev)          Ksh17 Billion

iii) Fuel Levy Fund (15%)                      Ksh8.2 Billion

iv) Conditional (loans & grants)           Ksh33.2 Billion

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