- The Kenya Revenue Authority (KRA) expects to collect KSh 1.89 trillion in 2020/2021 fiscal year as part of finances to fund the KSh 2.79 trillion budget
- Treasury CS Ukur Yatani said the recurrent expenditure was expected to be KSh 1.82 trillion while development expense was set to gobble up KSh 633.1 billion
- Yatani allocated KSh 497 billion to the education ministry, health services (KSh 111.7 billion), food security (KSh 52.8 billion), security (KSh 167.9 billion) and KSh 10.2 billion for NYS
- Counties total allocation was KSh 369.9 billion while the Ethics and Anticorruption Commission, Office of Director of Public Prosecution received KSh 3.1 billion each
The Ministry of Education has received the highest allocation at KSh 497 billion in the 2020/2021 proposed budget tabled in Parliament on Thursday, June 11.
While presenting the KSh 2.79 trillion budget before the National Assembly, Treasury Cabinet Secretary (CS) Ukur Yatani said out of the KSh 497 billion earmarked for the education sector, KSh 59.4 billion would be injected in free secondary education, exam fee waiver (KSh 4 billion) hiring of 5,000 teachers (KSh 2 billion), and KSh 1.6 billion for the school feeding program.
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Some KSh 800 million will be pumped in stepping up digital learning, KSh 16.8 billion to the Higher Education Loans Board (HELB) while KSh 323 million was set aside for research in the CS George Magoha led ministry.
The CS further proposed allocation of KSh 172.4 billion for the infrastructure development, Security (KSh 167.9 billion), Big Four agenda (KSh 128.3 billion), health services (KSh 111.7 billion), sustainable housing (KSh 15.5 billion), water and environment (KSh 82.7 billion) and KSh 52.8 billion for food security.
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Ministry of Sports was allocated KSh 14 billion, Nairobi Metropolitan Services (KSh 26.4 billion), ICT (KSh 14.9 billion), National Youth Service (KSh 10.2 billion), cash transfer for vulnerable groups KSh 17.6 billion, energy (KSh 63.3 billion) as Parliament and the Judiciary got KSh 37.3 billion and KSh 18.1 billion respectively.
In a move to firm up efforts to and win the war against corruption, Treasury allocated the EACC and the ODPP to the tune of KSh 6.2 billion (KSh 3.1 billion each).
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The Asset Recovery Agency (ARA) and the Financial Reporting Centre (FRC) received an allocation of KSh 158 million and KSh 619 million respectively.
Yatani observed that even as KRA expected to collect KSh 1.89 trillion, in the financial year 2020/21, the fiscal deficit, including grants was projected to decline to KSh 840.6 billion from KSh 842.7 billion financial year 2019/20.
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The deficit, he said, will be plugged through grants and loans.
"In the financial year 2020/21, the fiscal deficit of KSh 840.6 billion will be financed through net external financing of KSh 347.0 billion, net domestic financings of Ksh 493.4 billion and other net domestic repayments of Ksh 627 million," said Yatani.In a move to help the country recover from destitution caused by COVID-19 pandemic, the CS revealed a separate KSh 56.6 billion had been earmarked to steady local production and KSh 5 billion set aside for the rehabilitation of infrastructure destroyed by floods.
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The government, he said had reduced landing and parking charges in airports to encourage air travel and revamp the tourism and hospitality sector.
"The government has also waived landing and parking fees at our airports in order to facilitate movement of cargo, in and out of Kenya. Going forward the government will scale up efforts to boost the tourism sector by promoting aggressive post-COVID-19 tourism marketing and providing support for hotel refurbishment through soft loans to be channelled through the Tourism Finance Corporation. Up to KSh 3 billion has been set aside to support the renovation of facilities and the restructuring of business operations by actors in this industry," the CS stated adding the KSh 2 billion would be injected in Kenya Wildlife Services (KWS).READ ALSO: Coronavirus update: 121 new cases as death toll hits 92
The taxman, Yatani said, was going to lose up to KSh 172 billion as a result of tax cuts and exemptions the government had implemented as a way of ensuring there was money in pockets of Kenyans amind the pandemic.
In a move to net more tax, said Treasury had proposed introduction of the remission of 1% minimum tax gross turnovers on all companies among other taxes that are expected to net KSh 38.9 billion in revenue.
"Some companies continue to declare losses year-in-year out hence not contributing to the exchequer in terms of tax revenue. However, these companies enjoy facilities, such as infrastructure, whose cost of construction and maintenance is serviced by the government through tax revenues contributed by other patriotic taxpayers. In order to ensure all taxpayers, contribute to the construction and maintenance of our infrastructure, I have proposed to introduce a minimum tax that will be payable by all companies at the rate of 1% of their gross turnover," he said.Treasury also increased the threshold for rental income from KSh 10 million to KSh 15 million and introduced 1.5% digital tax for online transactions.
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