Saturday, June 12, 2010

HOW WILL YOU FUND IT?

Kenya National Commission on Human Rights has questioned how the Government will raise funds to support the Sh997 billion Budget.

KNCHR chairperson Florence Jaoko said although the Budget is geared towards stimulating economic growth, she expressed concern how the money would be raised.

The Budget read by Finance Minister Uhuru Kenyatta on Thursday is the largest ever. "My concern is how the Government would get the money. I hope there would be no surprise tax increase," she said on telephone.

Jaoko, however, lauded the minister for allocating more funds to crucial sectors such as infrastructure, health, youth, housing, and energy.

Spur Growth

"These are areas of concern and with more funds, it would spread benefits to other sectors and spur growth leading to job creation," she added.

Uhuru allocated Sh182 billion to infrastructure development, which represents an increase of Sh30 billion over the last financial year. The Government also doubled budgetary allocation for essential medicines to Sh5.3 billion and Sh34 billion to energy sector.

Jaoko, however, stressed the need for the Government to allocate funds to other terminal illnesses like cancer and stop concentrating only on HIV/Aids.

At the same time, Ministry of Water has expressed satisfaction with the allocation of funds it got in this year’s Budget. Permanent Secretary David Stower said the docket would work to ensure more Kenyans have access to clean and affordable water and sanitation services.

Elsewhere in Narok, wheat farmers are unhappy with the decision to lower import duty of the grain from 35 to 10 per cent. They said the lowering of the duty would open window for millers to import the grain, thus depressing producer prices.

Narok is the biggest producer of wheat. Farmers, who expect a bumper harvest this year would, according Ministry of Agriculture projections, harvest between 20 to 27 bags per acre. About 75,000 hectares of land is under the crop.

Narok Farmers Association said the lowering of duty would hurt farmers who have struggled despite incurring heavy costs on inputs.

"We read mischief in the timing. The Government should have allocated the National Cereals and Produce Board enough money to buy what we have in the farms before allowing millers to import," said the group’s chairman David Mpatiany.

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