The MPs Budget Watch: Budget Digest
July 2010
Parliamentary Budget Office, Parliament of the Republic of Kenya
"Was this a grass root budget? Has the unit of service delivery turned into constituency? Can every part of the country expect to have more nurses, more teachers, and access a computer? The road sector has been allocated huge resources; does this signify an end to potholes and muddy roads? For the experts’ their verdict is that this was a very ambitious budget that presents difficulties in actualizing. Indeed, they claimed that the country was running on one engine-the domestic economy and if it stalls, the country would be in serious trouble"
- This years' budget was prepared at a time when the country had received adequate rains and against a backdrop of political stability and an economy that had showed signs of recovery. The key expectation as the Minister for Finance read the speech whose theme was "Towards inclusive and Sustainable Rapid Economic Growth Rate" was the quest to achieve a sustainable economic growth that ensures equity in wealth distribution based on available resources.
- The Minister in his budget speech outlined the strategic framework that the government will follow leading to the country returning to the growth pattern attained in 2007 of 7% is sustained and thereafter accelerating growth further to reach the vision 2030 annual target of 10% in the course of the next five years. The strategic Framework of achieving this is underpinned by maintaining macroeconomic stability; fully implementing the East African Common Market Protocol; facilitating Business Development for wealth and employment creation; and investing in security for economic recovery.
- Fundamental to this strategic framework is the urgent need for the Minister to address unemployment challenges, institute structural reforms aimed at increasing productivity and improving business climate, scaling up implementation of the socio-economic projects in marginalized areas as well as dedication of resources in infrastructure for the attainment of the faster development.
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