WATCH LIVE: CS Njuguna Ndung'u Presents 2024/25 Budget
All eyes are on the National Treasury as it submits its budget proposal estimated at Ksh4 trillion to Parliament for approval.
Viral Tea Ke Writer Treasury Cabinet Secretary (CS) Njuguna Ndung'u is currently reading the 2024/25 Budget in Parliament, which proposes a raft of harsher tax measures.
All eyes are on the National Treasury as it submits its budget proposal estimated at Ksh4 trillion to Parliament for approval.
The Treasury has rallied members of parliament to enforce the controversial tax measures in the Finance Bill, 2024 as it looks to align with the International Monetary Fund's demand for more taxation under the fiscal consolidation programme with Kenya.
Treasury CS Njuguna Ndung'u packs the 2024/25 Budget in the iconic briefcase as he prepares to head to Parliament for its reading on June 13, 2024. /NATIONAL TREASURY
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5.08 pm: Njuguna Ndung’u: The government has prioritized expanding the space for creativity including freedom of expression and protection of intellectual property rights. To support tourism, sports, culture and recreation, I have proposed an allocation of Ksh23.7 billion
4.20 pm: Prof Njuguna Ndung’u: In order to move towards a balanced budget and further improve efficiency in public spending the following bold actions have been outlined: curtailing spending on foreign travel, rationalization of all training expenses across government and restricting all training to within government institutions. Rationalizing all purchases of motor vehicles and suspending purchases of furniture for a period of 1 year and suspending all refurbishments and partitioning of government offices.
3.58 pm: CS Njuguna Ndung’u: The public sector wage bill stood at 38.2% as a ratio of total revenue in 2021. To contain the wage bill, the government implemented a wage freeze in the financial years 2021-2023 in addition to eliminating and streamlining the number of allowances
3.52 pm: CS Njuguna Ndung’u: The effects of climate change have become detrimental to economies across the globe. Kenya has not been spared from these negative effects of climate change, the recent unprecedented floods that our country faced following the prolonged drought claimed lives and caused injuries to people. The government responded promptly and undertook short-term measures to mitigate the devastating impacts of the drought and floods
3.45 pm: CS Njuguna Ndung’u: To strengthen economic recovery, the government will accelerate the implementation of policies, programs and interventions in the bottom-up economic transformation agenda. First, enhance agricultural transformation, support MSMEs, provide affordable housing and settlement, achieve universal health care, support the growth of the digital super highway and creative economy that will support job creation
3.36 pm: CS Ndung'u- As of 31st May 2024, the exchange rate was at 130.20 from a high of 163 in January. The appreciation and stability of the exchange rate created confidence and triggered inflows of foreign direct exchange and attracted investors to the NSE.
3.31 pm: CS Ndung'u- We have one major problem that has 3 phases. There is increased demand for increased spending or expenditures from the government which means that we have to finance that through taxes or debt. There are limitations and even constraints imposed in terms of public debt accumulation and even the debt-carrying capacity of the economy. There are limitations in terms of mobilizing higher tax revenues
