kenya post budget analysis 2013.pdf

7/28/2019 Kenya Post Budget Analysis 2013.pdf

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TRANSFORMATION FOR SHARED PROSPERITY:

2013/14 BUDGET HIGHLIGHTS

Economic Growth % - 2012

1 Kenya 4.6

2 EAC 5.5

3 SSA 5.3

4 World 3.2

5 OECD 1.4

6. Euro -0.4

Revenue Estimates FY 2013/14

Total Revenue KSh.1,027.2bn

Of Which:

1. Ordinary Revenue -Ksh. 961.3 bn2. Appropriations-in-aid Ksh. 67bn

Expenditure Estimates FY 2013/14

Total expenditure Ksh. 1,640.9

Of which:

1. National Government Ksh 955.5bn2. County Transfer Ksh. 210bn3. Discretionary Expenditure Ksh.

507.9bn

EXPENDITURES: SECTORAL ALLOCATION OF RESOURCES


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In facilitating the private Sector to Create Jobs, the Government will:

1. Expand, Upgrade and Rehabilitate roads Ksh.97.9 bn

2. Construct a two-track standard gauge railway line from

Mombasa to Kisumu

Ksh22 bn

3. Invest in reliable and affordable energy Ksh.78.5 bn

4 Construct the first three berths & associated infrastructure

at the Lamu Port

Allocations to achieving

Food Security

On-going irrigation -8 Agri-business fund - 2 Galana irrigation -3.6

Tax Compliant

Employers to get a

tax rebate as an

incentive for hiring

inexperienced

graduates

Defined Budget Priorities1 Improving productivity and Competitiveness

2 Technical and financial support to SMEs

3 Infrastructure Development

4 Creation of an enabling Business environment

5 Improving quality of Education and Training

6 Modernizing the Police Service

7 Food Security through irrigation

8 Maintaining macroeconomic stability

9 Sealing Leakages on revenue collection and expenditure

10 Supporting devolution

11 Progressive social protection for every Kenyan

Budget

Deficit F

2013/14

estimateat Ksh.

356.9bn

Procurement Reforms

1. 30% of public procurements to be reserved for the youth ,women & persons with Disabilities

2. Exclusive preference to local firms3. Tendering period capped at 30 days

To Enhance Education Ksh.(bn)

1. Free primary education 10.3

2. School Feeding 2.6

3. Free Day Sch. Education 20.9

4. Secondary Sch. Bursary 1.17

5. Upgrading National

Schools.

0.8

6. Higher Education Loans 4.9

7. Youth Polytechnic 0.826

8. Laptops Program 53.2

To Enhance Health Care

1. Free Maternal Health- 3.8bn2. Health Centres &dispensaries -700mn3. Recruitment of 8,700 community nurses -3.1bn4. Recruitment of 2,900 Community Health Workers -522mn5. 1500 affordable housing units -1.2mn6. Health Care facilities in urban Slum 200mn


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Social Protection Ksh.(bn)How will the government spend Money

1. Domestic Interest 110.2bn2. Foreign Interest 38.2bn3. Salaries for Constitutional office holders 3.4 b4. Guaranteed debt payment 1.4bn5. International redemptions 88.6bn6. Domestic Redemptions 127.3bnDevelopment Expenditure FY 2013/

Estimated at 447.9bn

Ksh.bn

1. Orphans and Vulnerable Children 8.0

2. Elder persons cash transfer 3.2

3. People with Extreme Disability 0.770

4. Other disable people 0.452

5. Presidential Secondary Sch. Bursary 0.400

6. Urban Food Subsidy 0.100

TAX MEASURES1. Importation of items used to facilitate railway operation

tax exempt

2. Introduction of Railway development levy of 1.5% on allimported goods

3. Plastic bag bio-gas digesters tax exempted4. Import duty on welding electrodes increased from 10%

to 25%

5. Import duty on millstones and grindstones increasedfrom 0% to 25%

6. Import duty on plastic tubes for packaging tooth paste,cosmetics increased from 10% to 25%

7. Premiums for Group life and Group Personal Accidentpolicy tax exempted

8. Tax exemption for persons with disabilities extended tofive years

9. Withholding tax to be imposed on winnings from gamingand betting

TAX REFORMS

1. Amendments to income Tax Act to:(i). Encourage tax payers with tax offences to

engage KRA outside the courts

(ii). Empower the Commissioner to access booof accounts

(iii). Empower the Commissioner to collectcorporate tax from officers of corporate

bodies convicted of tax fraud

2. Amend customs law to Introduce customswarehouse rent

3. Table before parliament a Tax Appeals TribunaBill to establish a single tax appeals body

4. Re-table the VAT Bill- to simplify, modernize anreduce tax compliance

5. KRA to Leverage on ICT to Tax landlords6. Amend insurance Act to:

(i). open up ownership of insurance to citizensEAC Community

(ii). amend the mandate of Policy HoldersCompensation Fund to include participatio

the liquidation process of insurance

companies

7. Amend the Kenya Deposit Insurance corporatiofor adequate protection of depositors

8. Amend the Capital Market Act to :(i). provide for insurance of regional fixed inco

securities

(ii). to redefine the office the offence of insidetrading

9. Amend the banking Act to enhance penalties ounethical and illegal business activities


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kenya post budget analysis 2013.pdf

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