NAIROBI, The Kenyan government will reduce expenditure on non-core activities to fund key priority areas, says Treasury Cabinet Secretary (Minister) Henry Rotich.
In order to support economic growth, the government has adopted a raft of measures to fund its key policies while safeguarding a sustainable debt position, he said here Wednesday at the opening of public hearings for the 2018-2019 Medium-Term Budget. Also present was Deputy President William Ruto.
Rotich said allocations to key areas — universal healthcare, food security, manufacturing, housing; education, infrastructure, energy and social protection — will be prioritized.
Among measures to shore up revenues are expansion of the tax base to the informal sector, lotteries, overhaul of the Income Tax Act to remove most of the tax exemptions, rolling out integrated Customs management systems to prevent concealment, under-valuation, mis-declarations and falsifications of import documents.
Others include implementation of the regional electronic cargo tracking system to tame transit diversion, scaling up of on-going and routine activities such as pre-verification of conformity, bench-marking and auctions.
We are all aware that implementation of the ‘Big Four’ plan requires a huge capital outlay. To ensure we create fiscal space to raise the required resources we shall undertake a raft of expenditure reform measures, said Rotich.
The Deputy President said projects that would help deliver the ‘Big Four’ development agenda — food security, affordable housing, manufacturing and affordable healthcare for all — which are at the heart of the Government’s plans to create jobs over the next five years would be prioritized.
We will focus on addressing the challenges Kenyans are facing through investments that enhance the attainment of desired development objectives, said Ruto.
Source: NAM NEWS NETWORK