Take the poll last 6 months trend Analysis.
- Thread starter Okiya
- Start date
Blacks4Trump
Lister
Come on ....
Denis Young
Elder Lister
This is not happening any time soon. The last thing government needs is cutting taxes and reducing the Ordinary Revenue it collects. All it will do is increase the budget deficit.
mzeiya
Elder Lister
You've forgot to add that it reduces budgeted corruption, something Ruto has perfected compared to other regimes
Denis Young
Elder Lister
How does it reduce budgeted corruption?
Relic Hunter
Elder Lister
Kenya to the dogs
Because our budgeting making process uses expenditure first approach so it's easy to budget for corruption. If we used the revenue first approach like majority of OECD countries then budgeted corruption will reduce.
DeepInYourMind
Elder Lister
Whoever is behind these economic policies reasons like a school child. Cannot see beyond 1st order effects.
In their mind increasing taxes equals increased revenue.
But we're told none of the so called experts drive actual policy, all decisions are made in state house. The positions are merely used to reward allies with govt jobs
Denis Young
Elder Lister
Isn't this the first financial year that we are implementing zero-based budgeting? That is a step in the right directions because at the very least it prevents wastage of our meager resources. Couple that with E-Procurement and standardized prices will cut wastage, if it works.
Kenya doesn't generate enough revenue to fund what falls under recurrent expenditure. At the moment, Kenya is borrowing from multilaterals for budget support. We are even borrowing to send money to the counties. That is even before you get to the development. Yet Kenyans like you who keep complaining that Ruto has built nothing of consequences will keep demanding infrastructure as if the country is capable of funding it from its own resources. Teachers, lecturers, doctors etc have also added to the wage bill because of their CBA demands and the CBC curriculum. Expenditure is always going up.
What matters most for me is the liability management strategy. The goal is to consistently reduce our budget deficit, borrow cheaper loans to retire old expensive loans in an effort to create fiscal room. At some point in the near future, if Kenya sticks to this path, the economy will be thriving, resources will be freed up, and government will be able to collect even more that 3 trillion. (Revenues have been growing by 10% y/y). Debt repayment is biggest issue for Kenya. That is why you can't cut taxes recklessly. It has to be strategic.
Denis Young
Elder Lister
Let me get this right. Government borrowing is a problem. Raising taxes is a problem. Where do you want government to get money to repay loans?
The whole reason government was raising taxes was to meet the IMF conditions on resource mobilization in order to receive budgetary support. Without that IMF money Kenya would have sunk in 2021. The lesson here is to never cheer on leaders who consistently raise the budget deficit in the guise of building roads. May we never find ourselves in this hole again.