The Treasury has defended the government’s appetite for borrowing, maintaining that the alternative would be worse as Kenyans would have to pay more taxes.
Speaking on Citizen TV ahead of the reading of the 2021-22 Budget, Treasury Cabinet Secretary Ukur Yatani reiterated that the country is still within the debt ceiling set by parliament. He noted that they will be seeking an extension of the limit in parliament.
“Taxing our people at this stage is only going to affect businesses but seriously affect the common man, based on all this we prefer to borrow for the time being and deal with it at a later date,” Yatani said.
Adding: “Our debt ceiling is within the ceiling we set for ourselves, the scope is narrowing and at some stage in course of the next financial year, we will be going back to the National Assembly and Senate for adjustment.”
Asked if the Sh3.63 trillion budget will cushion Kenyans, CS Yatani said the 2021-2022 budget is a recovery budget.
“We are going to continue with sustained expenditure by implementing agenda four, enhance the economic stimulus package that we initiated in this financial year and there are vast of them including the Kazi mtaani, creating jobs and opportunities by expanding jobs in the medical sector, having more teachers, to stimulate consumption,” he said.
Yatani said Treasury is also exploring Public-Private Partnerships for development projects and creation of jobs, as well as indirect tax relief for certain products, especially in the health sector.