Why Kenya’s Budget Deficit Is Not Much To Achieve.

Kenya now has its highest ever in history, a budget of Ksh 2.3 Trillion of which a third of this will be on deficits. Some thinks that Kenya is borrowing too much at its level but politics aside this is not the fact.

There is no single country in the World that has ever ran itself without deficits unless its a deteriorating economy. Currently Kenya is ranked 3rd by World bank among countries that can acquire loan from any one as its economy is promising.

With its current budget of 2.3 Trillion, 1.583 Trillion is expected to be raised through ordinary tax. These includes Revenues, Income tax Pay As You Earn, Corporation tax Excess custodies among others. This adds up to two third of the total budget which I believe with corruption aside this is possible infact more than.

The other third is what is referred to as budget deficit. This is expected to be raised through borrowing and donations. Kenya targets to borrow about Ksh 459 Billions from world bank and other countries. It also targets to receive about Ksh 76 Billion from donors. The rest will be raised from treasury bills.

This is not a huge deficit as it being politicised by some Kenyans bearing in mind it is even less than 50% of our total budget. Countries like Japan runs on a deficit of up to 300% yet their country is still stable economically.