MPs agree to slash monies given to counties

Kenyans will possibly pay more taxes

Treasury Cs Henry Rotich reading the budget in Parliament

The Budget and Appropriations Committee (BAC) agreed with the National Treasury to slash monies allocated to counties.

BAC recommended that allocation to county governments for the Financial Year 2019/20 be retained at Ksh310 billion as had been proposed by Treasury.

However, the Commission on Revenue Allocation (CRA) had allocated Ksh335.7 billion to counties, and an additional Ksh21.7 billion for inflation.

Proposed budget

This will be less Ksh62 billion of what was allocated to counties during the 2018/2019 Financial year.

CRA had recommended the slashing of National Government’s share of revenues by Ksh40 billion to Sh1.52 trillion - from Ksh1.56 trillion proposed by Treasury.

The report by BAC will be presented at the National Assembly for a second reading.

Notably, the government proposed to read a budget of Ksh2.7 trillion for the Financial Year between July 2019 to June 2020.

Expenditure

More than 60 per cent of the budget – Ksh1.7 trillion - will be used to pay civil servants’ wages, advertising costs, printing, foreign and domestic trips.

Treasury proposed an overhaul to the income tax, which could mean an increase in taxation for employers and employees.

In addition, the government will implement various measures to boost revenue mobilisation. These measures will include a complete overhaul of the current Income Tax Act, strengthening tax administration and expansion of the tax base,” reads the BPS.

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