Kenyans should brace for higher taxation in the next government as President Uhuru Kenyatta’s last budget hits Sh3.31 trillion for the fiscal year commencing in July next year.
The 2022 Draft Policy Statement reveals a total expenditure and net lending are estimated at Sh3.298 trillion more than the budget for the current year in a bid to enhance investments in Kenyatta’s Big Four Agenda.
The education sector will take the lion’s share at Sh525 billion of which teachers would get the hugest share at Sh296 billion.
The Teachers Service Commission will receive an increment of Sh15 billion compared with the Sh281 billion of the current year.
County governments’ will also receive a huge sharable allocation which is estimated at Sh370 billion while the cost of interest payments on local and external loans and pensions is projected at Sh864.1 billion.
The ceiling for the national government budget has been put at Sh2.02 trillion, which is 6.97 per cent more than the Sh1.89 trillion for the current financial year.
Parliament’s budget has been raised 1.57 per cent to Sh38.48 billion, while the Judiciary’s is up 5.39 per cent to Sh18.88 billion.
The Independent Electoral and Boundaries Commission (IEBC) budget will be increased Sh7.33 billion to Sh21.69 billion a month to presidential polls set for August 9.
Kenyatta’s administration has also hinted it would be keen on the completion of the energy and roads projects it has initiated so far.
In this regard, the sector’s allocation has been capped at Sh368 billion with roads set to take up Sh211 billion, Sh77 billion for Energy, Sh10.8 billion for transport and Sh18 billion for housing.
The Health Ministry is on its part expected to receive Sh126.4 billion while agriculture is scheduled to receive Sh63.9 billion.
The Defence ministry is also poised to consume a sizeable chunk of the Sh3.3 trillion budget at Sh157 billion followed by Interior’s Sh143 billion.
The police service has been provided a cap of Sh103 billion while the Correctional Services would see its budget increased to Sh30 billion.
President Kenyatta’s administration has also proposed Sh126 billion caps for the health sector while Water is poised for Sh87.7 billion out of which Sh48 billion would go towards sewerage services.
On debts, only Sh2.405 trillion of the budget is expected to be funded from revenues which include Sh2.142 trillion in ordinary revenue and Sh263.7 billion in ministerial appropriations in aid.
Ordinary revenue comprises taxes and non-tax streams such as court fines, charges for use of government services, rent from buildings and forfeitures
“Revenue performance will be underpinned by the ongoing reforms in tax policy and revenue administration and boosted by economic recovery occasioned by implementation of priority programmes under the Economic Recovery Strategy (and), the ‘Big Four’ Agenda,” said the Treasury.