The daily dose of Jubilee development project continues. Today Jubilee government, South Korea and Africa development bank signed various water, irrigation and power projects on the Nile basin project in Busia and Bungoma counties. They include:
So far KRA is meeting its revenue target of 15% more (Kshs 160 Billion) this financial year and we are set to reach Kshs 1.5 trillion target. If we continue at this pace like we have in the last decade, it means cumulatively we can afford to pay the loans +interest without even factoring new revenue streams coming up, diversification of economy and economic impact of these project when completed. In the meantime let the people enjoy the service.
Hii ni kama pesa ya oil. haiwezi saidia raia. Borrowing is indirect tax on the citizens. The worst form of it. It is usually much easier because it creates an illusion of effortless prosperity and provides funds for the rulers to squander. All this without a question from the stupid citizens.
This is not exactly true. You should know that government expenditure is also growing at a faster rate the rate at which revenue collection is growing so I don’t see how that will help.
Recurrent expenditure for government (executive-judiciary-parliament) is Kshs 500 billion annually. The only big increase annually is for Teachers subject to the collective bargaining agreement. Civil service, armed forces is gradual and steady increase which is easier to match and factor. Devolved funds increase annually subject to the last audited financial year by auditor general and passed by parliament. Constitutionally its set not less than 15% of annual revenue collections but currently its 36%-38%. This year its at Kshs 300 billion. Debt repayment is Kshs 400 Billion (foreign and domestic) Lastly Kshs 300 billion on internally funded development projects i.e roads, water, laptops, bridges, power, elections, hospitals, etc. Total Kshs 1.5 Trillion. Government has factored 700 billion as debt (domestic/foreign) with 10 years grace period after completion of projects to allow enough time for government to grow its revenues cumulatively every year and grow the economy. I trust we will have a peaceful elections in 2017, economy continue to grow at current 6% heading to 7%, revenue increase of 15% annually, diversification of the export products/nations, increased infrastructure projects, opening up of the country and providing services to the mwananchi. I have cause to be positive for the future of our nation.
Most debt we are accumulating at the moment ni commercial, na the bond holders hawawezi skia hii maneno ya grace period. Only concessionary loans have such terms.