Kenya once again topped the region as a country with the most expensive national budget in the 2020/2021 fiscal year.
Kenya’s 2021/22 budget stands at USD 33.3 billion (Ksh3.6 trillion) the highest budget compared to all her neighbours in the East African region.
Kenya is followed by Tanzania whose budget is USD15.59 billion (Tsh36.32 trillion).
Uganda followed closely in third place with USD 12.61 billion (UGX44 Trillion)
Rwanda came third with USD 3.79 billion budget.
This means, Kenya’s 2021/2022 Budget surpasses that of Uganda, Tanzania and Rwanda combined.
East African Finance ministers presented their national budgets in their respective parliaments for the fiscal year 2021/22.
According to the East Africa Community (EAC) Treaty, partner states are required to read their budgets simultaneously.
But only the three founding member states – Kenya, Uganda and Tanzania – read their budgets.
Burundi whose financial calendar begins in January and South Sudan were both given time by the EAC Council of Ministers to adjust the reading of their budgets in harmony with the rest of the partner states.
Rwanda did not give reason for delaying the budget reading.
Out of the budget of KSh 3.6 trillion, a huge chunk of the money will cater for expenditure expenses which include paying salaries and loans.
The government, through the Kenya Revenue Authority, intends to collect at least KSh 1.8 trillion and seek a further KSh 953 billion to fill the deficit.
President Uhuru Kenyatta led administration allocated KSh 302 billion for security under the ministry of internal security, KSh 409 billion for devolution, KSh 202 for education, KSh 310 for Infrastructure and KSh 202 billion for education.
Uganda will also use a huge percentage of its budget to pay salaries and offset foreign and local loans.
According to the finance minister, at least 38% of the budget will go to expenditure expenses.
Ugandan government intends to finance 76% of the budget using local revenue, while the remaining 23% will be covered by loans from external partners.
Out of the Tsh 36.32 trillion budget, Tanzania intends to collect 49% through the Tanzania Revenue Authority.
The Samia Suluhu-led government will raise the remaining amount of domestic and foreign loans.