Thursday, June 09, 2005

The budget is out

Personally I'm impressed. I'm actually even better impressed that they are relying on KRA versus money from aid more heavily. I know most observers point this out as a worrying point. I say good move. Now to sensitize the local man to understand why they must pay their taxes.

All in all, that budget was thought through. Looked like someone went in and gave a good look at how to increase spending power amongst all people. Economists know how much this is necessary before an economy can begin to boom. So with free education catered for (I'm a sucker for this thing - I'm about to name one of my kids Kibaki for it)and the basic necessities, staple food, sanitary towels, yes those and cooking gas saw tax being eliminated. I've been saying how the government needs to spend money to boost the economy for a long time now and I'm just pleased. They seem to be going somewhere finally.

Hope that the newly united parliament remains that way and finally focuses on building the nation. Its sad that they have what it takes but are burdened by selfish motives to sheer blindness and utter folly! So that's my 2 cents. I think I have about a dollar worth more to say, but all of it in small dozes.

1 comment:

Tomilay said...

Well, the elimination of taxes on many consumer goods is a step in the right direction. The total elimination of any revenue collection is more than welcome, given the pathology of this kleptocracy. Personally think Kenya would be much better of without a government or at best very minimal government.

That said, we must cross our fingers and see if prices of consumer goods will come down. In an ideal market they should. In a mafia controlled market like Kenya's this may just be another opportunity to get big returns from little input.

I think the trepidation with relying on KRA is clear. KRA is one of the most corrupt institutions in Kenya. In any case they plan to widen the tax base, without having shown us what they can achieve with the revenues they collect.

To sum it all, I think there is too much government in Kenya. There is an urgent need for devolution. We cannot have 30 million people sit back and wait for an incompetent central government determine their destiny.