Kenya’s budget up, Uganda’s budget down
Kenya and Uganda joined Tanzania on June 10 under the normal arrangement of East African Community (EAC) partner states to table their national budgets on the same day.
Kenya increases its budget by 1.7 trillion shillings in fiscal year 2020/21, compared to 3.66 trillion shillings in fiscal year 2021/22, in part to respond to economic challenges brought on by the pandemic of Covid-19.
In Uganda, the government is cutting its 2021/22 budget from Ush 714 billion to Ush 44.7 trillion from what the country’s parliament approved last year.
Presenting the 2021/22 financial budget to Parliament yesterday, Kenya’s Treasury Secretary Ukur Yatani said the latest budget under President Uhuru Kenyata’s administration was to raise hopes for a nation seeking relief from shock economic impact of the Covid-19 pandemic.
Yatani said the government has set aside Ksh 142.1 billion in the 2021/22 budget for the implementation of priority programs under the Big Four program.
It has also set aside Ksh 27.2 billion to help Nairobi metropolitan services continue to operate.
Another Ksh 27.2 billion has been set aside for the construction of SGR Phase II (Nairobi Naivasha), and another Ksh 7.5 billion for the Lapsset project.
A total of Ksh 14.3 billion is also reserved for the Covid-19 vaccination and other preventive measures.
“In the fight against the pandemic, Kenya is joining forces with other member states of the East African Community (EAC) to offer duty-free imported raw materials and inputs for the manufacture of masks, disinfectants, ventilators and personal protective equipment, â€he noted.
In the education sector, Ksh 12 billion has been set aside for free primary education, where the skills-based program will receive Ksh 1 billion while Ksh 2.5 billion will be spent on hiring more. teachers. The Teachers Service Commission will receive Ksh 281.7 billion while Ksh 15.8 billion will go to the Higher Education Loans Board.
To protect local manufacturers from cheaper imports, Yatani said finished iron and steel products will be imported at an excise duty of 25 percent.
Inputs for making baby diapers, he said, will remain at zero percent under the duty remission scheme.
Mr. Yatan proposed reintroducing excise duty on bets at 20 percent of the stake amount.
The Treasury turned over Ksh 46.61 billion to lawmakers, a generous 25 percent increase from the current year’s Ksh 37.3 billion. Allocation makes parliament one of the biggest winners of Yatani’s second budget
The judiciary, the third branch of government, will receive Ksh 17.92 billion in the new fiscal year, a marginal increase from the current Ksh 17.7 billion. The allowances come at a time when the judiciary, which employs around 5,000 people, complains about budget cuts.
In Uganda, the new Minister of State for Planning, Mr. Amos Lugoloobi, said the budget will be executed by domestic revenue of 76.7% and foreign revenue by 23.3%.
“Our domestic revenues are expected to be 22.425 trillion US shillings, while domestic borrowing is 2 943 trillion US shillings,” he said.
The government will also derive USh200 billion in revenue from the Petroleum Fund and another USh3.583 billion from budget support.
External financing for projects, he said, will amount to 6,868 billion shillings while aid credits amount to 212.4 billion shillings and refinancing of domestic debt to 8,547,000. billion shillings.
From the budget, US $ 6.9 trillion has been allocated for peace, security and good governance.
“The funds are intended for the refurbishment and maintenance of military equipment, the completion of the construction of a reference military hospital in Mbuya and the launch of the construction of 30,000 housing units for the military”, he noted.
The ministry added that USh 134.9 billion has been allocated in the 2021/22 fiscal year budget to improve the digitization of the economy, while USh7.7 trillion has been allocated to improve the development of the economy. human capital.
“Our budget is very focused on restoring the economy to a medium-term growth path, improving the well-being of the population to ensure health and a skilled workforce and ensure peace, security and good governance, â€he said.
* Written by Alfred Zacharia