Massive spending? When gov has only spend 37% of it development budget due to several reasons including court cases, procurement and lack of capacity?
No new income? How then did the GDP grow by 6%. In 55B USD economy that is about 4billion USD new wealth created annually.Despite the hulabaloo, KRA has continued to collect more taxes, thanks to growing economy. When the economy stop growing, you can say we have problem.
Our problem is not overspending..it lack of SPENDING. We should be grateful for Chinese , CDF and Counties...for helping us spend the money. Previously we had problem because WB/IMF/EU and Gov funded projects never could get off ground.
Now Chinese are already 70% done with SGR. Just imagine that? In 3 short years we are rolling a brand new SGR railway. Counties and CDF are delivering roads, schools, water projects and all little project all over the country...which never happened before.
In a growing economy like ours, our debt is sustainable, less than 50% of GDP! Yes as we improve our ability to spend, Rotich find himself increasingly facing cashflow problems, but that is the job of treasury...to find money for gov to spend and spend.
How is the massive spending by the dynamic duo (DD) being replenished?
For instance, when the DD sucks money and spends it to these grandiose projects (with a big chunk being stolen), it is merely redistributing income. New income is not being created. In fact, KRA is struggling to collect more taxes from dwindling sources.
Debt?
And how's it gonna be paid back?