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Uhuru spares Kenyans tax increase

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Denzel Musumba

Denzel Musumba

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Finance Minister Uhuru Kenyatta surprised the country by avoiding the large tax increases many expected, and injected a fresh sense of optimism among the poor by removing duty on kerosene and maize in the 2011/2012 Budget.The focus was on cushioning the poor from rising costs of basic commodities, including food and fuel, while maintaining high spending on critical infrastructure that will support economic growth. Uhuru directed massive resources towards agriculture and infrastructure projects to achieve food security and sustainable development.Sh100 billion went to agriculture-related projects like irrigation and water harvesting, environmental conservation, and fisheries development among others.Another Sh221 billion was allocated for infrastructure projects, with Sh109 billion earmarked for roads, Sh66.7 billion for energy, and in particular exploration of geothermal, and Sh5 billion towards the standard gauge and Nairobi commuter rail project, the first in East Africa.All this comes at a cost, however, creating a deficit that is 6.8 per cent of the country’s gross domestic product – market value of all goods and services), or Sh236.4 billion. The double-digit interest rate has intensified concerns about how the Government will finance its ambitions, but Kenyatta said he was not unduly worried about the cost of increased borrowing...For more info click http://eastafricaradiousa.com/blog/?p=5580

 

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