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Ksh 1.4 Trillion national budget
murchr
#21 Posted : Thursday, June 14, 2012 12:17:17 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Intelligentsia wrote:
Am amazed we are considering oil revenues yet it is not proven in the first place that the reserves are commercially viable! What if we reckon them and then they ont materialise? Si exactly hivyo ndivyo M7 alifanya in Ug, spending petro money he anticipates to earn and raiding public coffer off a cool USD 740M to buy 6-8 Su-30MK2 jet fighters?

My concern is that we get a trimmer budget (remember fewer ministries <15)that we can afford so that we don't rely on donors at at all to plug any deficit - i dont want our country to end up with crazy donor conditionalities like Burundi which relies on them for almost 50% of its budget.

For us the solution is to seal loopholes - to bring more guys under the tax net and ensure teh funds are actually well-utilised si ukora kama ya FPE,NHIP, NSSF, etc.
And I hope they allocate more money to defence - kenya needs to upgrade its military capability now that our geo-political stature is growing.




Do u wait to get the relevant news from the horses mouth? UG has 2.5BBo so it is ok for them to spend on moneys they havent received tho am not supporting the buying of military warfare, they would have been bright if they built a refinery
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
hisah
#22 Posted : Thursday, June 14, 2012 7:52:58 AM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
@Murchr - UG is building an oil refinery.

www.newvision.co.ug/news...set-for-demarcation.html

Also the proposed pipelines on many presentations by Afol & Tullow hinted the same a while back.

As for KE's heavy budget, my biggest concern is the trade deficit with a weak currency. Foreign debt will balloon badly. Inflation and high interest rates will keep squeezing the economy and tax revenues. Also the recurrent domestic expenditure needs to be trimmed. Either merge ministries or cut back the redundant offices. The coalition govt status should be checked in future to prevent unnecessary office creations.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
2 Miles
#23 Posted : Thursday, June 14, 2012 8:09:18 AM
Rank: Member


Joined: 10/26/2010
Posts: 125
Why can't we move to reduce spending and put our priorities in order? Increasing taxation shouldn't be the only solution.

Increasing taxes makes life harder for the ordinary mwanainchi. Corruption could also increase since if there is more money to be spent..there will be angloleasing and NHIF type of corruption activities.

The capital gains tax could also be introduced. I think it will be an impediment to growth unless it is well structured
Sober
#24 Posted : Thursday, June 14, 2012 10:15:56 AM
Rank: Elder


Joined: 11/27/2007
Posts: 3,604
I will be out to see the allocation for infrastrucute in the 1,400 billion budget. then start commenting.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
Sober
#25 Posted : Thursday, June 14, 2012 10:19:15 AM
Rank: Elder


Joined: 11/27/2007
Posts: 3,604
2 Miles wrote:
Why can't we move to reduce spending and put our priorities in order? Increasing taxation shouldn't be the only solution.

Increasing taxes makes life harder for the ordinary mwanainchi. Corruption could also increase since if there is more money to be spent..there will be angloleasing and NHIF type of corruption activities.

The capital gains tax could also be introduced. I think it will be an impediment to growth unless it is well structured


In as much as increasing tax reduces the marginal propenssity of spending i wouldnt advocate for introduction of tax on our capital gains as it didscourages investment.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
Intelligentsia
#26 Posted : Thursday, June 14, 2012 12:36:50 PM
Rank: Elder


Joined: 10/1/2009
Posts: 2,436
hisah wrote:


]As for KE's heavy budget, my biggest concern is the trade deficit with a weak currency. Foreign debt will balloon badly. Inflation and high interest rates will keep squeezing the economy and tax revenues. Also the recurrent domestic expenditure needs to be trimmed[/i].


I concur.
Our govt needs serious lessons on frugality/ austerity to reduce doemstic expenditure -for example those nasty sh*tty commissions of this and that that keep gobbling funds aimlessly and dont deliver at all. And all those ministries!!

One other very sad aspect of the KShs 1.4T budget however, is that >70% is for meeting recurrent expenditure like salaries and admin. costs rather than for capex programmes. We surely need to change this structure - can't all those Treasury mandarins surely see this?!

@ murchr - They can afford them much easily in future rather than now because public revenue is expected to double in 10-15 yrs, but not now and thats why they have a huge BoP deficit.
7 yrs after Ug discovered oil, it is still not being exploited. Then again one can argue M7 is merely discounting future expected petro cashflows.
eboomerang
#27 Posted : Thursday, June 14, 2012 12:50:11 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
Intelligentsia wrote:
hisah wrote:


]As for KE's heavy budget, my biggest concern is the trade deficit with a weak currency. Foreign debt will balloon badly. Inflation and high interest rates will keep squeezing the economy and tax revenues. Also the recurrent domestic expenditure needs to be trimmed[/i].


I concur.
Our govt needs serious lessons on frugality/ austerity to reduce doemstic expenditure -for example those nasty sh*tty commissions of this and that that keep gobbling funds aimlessly and dont deliver at all. And all those ministries!!

One other very sad aspect of the KShs 1.4T budget however, is that >70% is for meeting recurrent expenditure like salaries and admin. costs rather than for capex programmes. We surely need to change this structure - can't all those Treasury mandarins surely see this?!


It is really sad to have a feeling that you are led by a government that collectively fails to apply common sense.

How can it be that every other person in the street can see that something is not adding up? unless the government is privy to details not given to us, of which they should provide this information to a certain extent. I mean even private auditing firms are commenting that the current revenue-expenditure structure is not going to work.

We cannot become industrialized by just replicating infrastructure similar to Singapore etc. There are much more elements apart from infrastructure that need to be in place for the country to have a sustainable revenue generation model.

An example. The minister for Finance on capital talk admittedly said that our current largest trading partner is Uganda @5:00. For short term quick gains, isn't that the route that required immediate intervention and improvement in infrastructure ??
ralp_mutu
#28 Posted : Thursday, June 14, 2012 1:49:06 PM
Rank: Member


Joined: 3/26/2012
Posts: 232
Location: Nairobi
1. The Budget speech 2012/2013
2. The Finance Bill 2012
3. The provisional collection of Taxes and Duties Act
4. Estimate of Revenue of the GoK
5. Statistical Annex to the budget speech for the fiscal year 2012/2013
6. Financial statements for the fiscal year 2012/2013

Where can i get this "grand annual work of fiction" documents Today
My folks told me that my very first word was 'billionaire'
hisah
#29 Posted : Thursday, June 14, 2012 3:12:22 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
Watching the budget speech here - http://www.capitalfm.co.ke/tv/budget2012

It is 7pm here and I hope I don't fall asleep from the boredom...

Another stream - http://www.standardmedia...e/ktn/index.php?ktnlive and this one - http://www.ntv.co.ke/live

And Twira feeds here - https://twitter.com/#!/search?q=%23Budget2012
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#30 Posted : Thursday, June 14, 2012 3:28:59 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
GDP growth expected to rise by 5.2% in 2012 - Must be smoking some good sh** this FinMin.

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#31 Posted : Thursday, June 14, 2012 3:36:09 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
CBK's MPC instructed to reduce inflation to between 5% and 7% - with a limping KES... I give up!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#32 Posted : Thursday, June 14, 2012 3:38:38 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
One James Arengo almost drooling... Can't blame him. Almost doing the same...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
ralp_mutu
#33 Posted : Thursday, June 14, 2012 3:38:48 PM
Rank: Member


Joined: 3/26/2012
Posts: 232
Location: Nairobi
hisah wrote:
GDP growth expected to rise by 5.2% in 2012 - Must be smoking some good sh** this FinMin.



I like what he smoked, "inflation to single digit level in a few months time due to CBK policies" says Githae
My folks told me that my very first word was 'billionaire'
eboomerang
#34 Posted : Thursday, June 14, 2012 3:46:57 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
,
Impunity
#35 Posted : Thursday, June 14, 2012 3:47:58 PM
Rank: Elder


Joined: 3/2/2009
Posts: 26,330
Location: Masada
ralp_mutu wrote:
hisah wrote:
GDP growth expected to rise by 5.2% in 2012 - Must be smoking some good sh** this FinMin.



I like what he smoked, "inflation to single digit level in a few months time due to CBK policies" says Githae


He smoked wet stuff producing white smoke.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

eboomerang
#36 Posted : Thursday, June 14, 2012 3:55:03 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
10 years later we still continue to milk the free primary education line. While I understand the reasoning and the impact it brought about, the interface which is in dire need of expansion is transition from high school to tetiary education. That is the point where we have lots of people who are not equiped with any meaningful life skills in the society.
Jus Blazin
#37 Posted : Thursday, June 14, 2012 6:48:05 PM
Rank: Elder


Joined: 10/23/2008
Posts: 3,966
Were taxes increased?
Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
kyt
#38 Posted : Thursday, June 14, 2012 7:07:35 PM
Rank: Elder


Joined: 11/7/2007
Posts: 2,182
why does the recurrent budget keep on going up?
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
murchr
#39 Posted : Thursday, June 14, 2012 7:20:54 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
eboomerang wrote:
10 years later we still continue to milk the free primary education line. While I understand the reasoning and the impact it brought about, the interface which is in dire need of expansion is transition from high school to tetiary education. That is the point where we have lots of people who are not equiped with any meaningful life skills in the society.


Were they better of when they never went to sch at all?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
QW25091985
#40 Posted : Friday, June 15, 2012 8:19:18 AM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
the government should provide a Cheap 100ml pack of milk called BrokeSide !
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