Wednesday, June 17, 2009

OBSERVATIONS ON KENYA'S 2009/2010 BUDGET

The
Finance Minister has impressive speech delivery. He kept the budget speech short, interesting and communicated with his audience within and outside the Parliament during the speech.
2009/2010 budget anticipates Government borrowing of Ksh 109 billion. Armchair economists have crowed about how the new borrowing will crowd out the private sector and raise interest rates.

I think NOT.Uhuru provided an expansionary budget and an expanded source of funds at the same time. How?

Firstly, he has provided AMMENDMENTS to the
Retirement Benefits Authority (RBA) regulations to allow schemes below Ksh 100 million in size to invest entirely in Government Bonds and bills. New money into statutory schemes such as the new Civil Service Pension scheme, Local Authorities provident schemes and National Social Security Fund (NSSF) will be channeled into Government securities and infrastructure bonds.

Secondly, he maintained the current TAX RATES. In an environment of rising inflation constant tax rates allow Governments to increase their tax revenues without raising tax rates. For instance, if the price of a widget increases from Ksh 116 to Ksh 150.Value Added Tax payable to the Government would rise from Ksh 16 to Ksh 20.69 (assuming a VAT rate of 16% and a VAT inclusive sale price of Ksh 116).
Salaries are likely to be increased to mitigate the effects of higher living expenses. If your Gross pay rises from Ksh 20,000 to Ksh 25,000 your tax payments rise. The effect is more pronounced if your gross is above Ksh 40,000 because your marginal tax rate is 30%.

Thirdly, Kenya has a low CAPACITY to spend. It is unlikely that all the money set aside for the CDF and other Development projects will get spent. Hence, our deficit may be smaller than expected.

Links: 2009 Budget speech and Finance Bill 2009.

11 comments:

MainaT said...

Interesting way of looking at the budget.
Re the deficit, you are assuming he'll meet the revenue targets in the first place.
Also, you've not factored in drought

TSR.ARIJIT said...
This comment has been removed by a blog administrator.
pesa tu said...

@mainat:U were spot on about the drought

Anonymous said...

Interesting post - and - blog!

Machiri said...

Excellent right on it

dojuma said...

wow this article is so informative
thanks for sharing it out.

Dr Purva Pius said...

My name is.Mrs.Juliet Quin. I live in Canada and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $ 73,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $ 73,000.00 Canada Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Juliet Quin that refer you to him. Contact Dr Purva Pius via email: reply to email {urgentloan22@gmail.com}

Anonymous said...

Allow me to introduce the LE-MERIDIAN FINANCING SERVICES. We are directly in loan financing and project (s) pure in terms of investment. We provide financing solutions to companies and individuals seeking access to capital markets funds, such as oil and gas, real estate, renewable energy, pharmaceuticals, healthcare, transportation, construction, hotels, etc. We can fund up to $ 900,000,000 (Nine hundred million dollars) in all regions of the world, as our return on investment of 1.9% can be guaranteed on projects.
Le Meridian financing service.
  Email Contact info@lemeridianfds.com Or lfdsloans@outlook.com
WhatsApp ... + 19893943740.

Unknown said...

Hello everyone, I'm Patricia Sherman in Oklahoma USA right now. I would like to share with you my experience of borrowing USD $185,000.00 to clear my bank draft and start a new business. It all started when I lost my house and I took my stuff because of the bank policy and I met some bills and some personal needs. So I became very desperate and started looking for funds in every way. Fortunately for me, a friend of mine, Linda told me about a credit company firm, I was intrigued by the fraud, but I was intrigued by my situation and had no choice but to get advice from my friend about this company. contacting them really doubted me because of my past experience with online lenders, did you know that little? '' Elegantloanfirm@hotmail.com This company has been very helpful to me and my colleague and today, thanks to this credit company, the proud owner of well-organized work and responsibilities, they smiled back at me. So if you really need to grow or start your own business, or if you really need to borrow money in any financial hardship, we recommend you find a financial development opportunity in your business today. {E-mail:} Elegantloanfirm@hotmail.com ... online for credit not a victim of scam. Thank you.

Anonymous said...

zamusic.tv

zamusic new songs

zamusic.com


lil wayne funeral zip

lil baby sum to prove mp3 download

Angelina Keffi said...

There is a safe & effective Natural Herbal Medicine. For Total Cure Call    +2349010754824,  or email him   drrealakhigbe@gmail.com       For an Appointment with (Dr.) AKHIGBE contact him. Treatment with Natural Herbal Cure. For:Dengue Fever, Malaria. Painful or Irregular Menstruation. HIV/Aids. Diabetics. Vaginal Infections. Vaginal Discharge. Itching Of the Private Part. Breast Infection. Discharge from Breast. Breast Pain & Itching. Lower Abdominal Pain. No Periods or Periods Suddenly Stop. Women Sexual Problems. High Blood Pressure Chronic Disease. Pain during Sex inside the Pelvis. Pain during Urination. Pelvic Inflammatory Disease, (PID). Dripping Of Sperm from the Vagina As Well As for Low sperm count. Parkinson disease. Obesity, Lupus. Soreness/Injury  Cancer.  Tuberculosis.  Zero sperm count. Bacteria, Impotence Fertility,Protoplasmic, Diarrhea. Hepatitis A&B, Rabies. Asthma.  Quick Ejaculation. Gallstone, Cystic Fibrosis, Schizophrenia, Crubs, Cirrhosis,  Premature Ejaculation. Herpes. Joint Pain. Stroke. Cornelia Disease, Weak Erection. Ovarian problem,  HeartBurn, Erysipelas, Thyroid, Relapsing polychondritis,  Discharge from Penis. Bronchial Problem,  HPV.  Hepatitis A and B. STD. Smallpox, Staphylococcus + Gonorrhea + Syphilis. Heart Disease.  Pile-Hemorrhoid.rheumatism,  Impotence, thyroid, Autism, Depression,  Sepsis Bacteria,  Penis enlargement, Prostate Problem,  Waist & Back Pain.  Male Infertility and Female Infertility. Etc. Take Action Now. contact him & Order for your Natural Herbal Medicine:  +2349010754824  and email him    drrealakhigbe@gmail.com    Note For an Appointment with (Dr.) AKHIGBE.I suffered in Cancer for a year and three months dying in pain and full of heartbreak. One day I was searching through the internet and I came across a testimony of herpes cure by doctor Akhigbe. So I contacted him to try my luck, we talked and he sent me the medicine through courier service and with instructions on how to be drinking it.To my greatest surprise drinking the herbal medicine within three weeks I got the changes and I was cured totally. I don't really know how it happens but there is power in Dr Akhigbe herbal medicine. He is a good herbalist doctor.