The new treasury Cabinet Secretary John Mbadi has revealed how he will increase and raise revenue without having to burden kenyans with increased taxation that led to the protests.
According to the new entry by the broad based government system, there is more revenue that is uncollected and with better system in place to collect all this revenue, the country will hit its target without increasing taxes.
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The first step according to Mbadi is to integrate the payroll with the Integrated Financial Management Information System (IFMIS) which is a parent accounting system to keep track on revenue collected in the country.
“Clearly if we cannot integrate our payroll systems from the state departments to IFMIS, which is our parent accounting system, and all the way to the Kenya Revenue Authority (KRA) then we don’t know what we are doing.”
Mbadi insisted that there will be no need of raising taxes if the payroll audit and widening the tax base to increase revenue and ensure that those who have evaded taxes are included in the system to raise revenue without burdening kenyans.
“We don’t have an option now that resources have become scarce. We must prudently and efficiently use public resources by making public procurement systems efficient and not open to abuse. We must make sure end-to-end procurement works.”
The new Cabinet Secretary aims to improve revenue through his tactics by roughly Ksh400 billion to ensure that budget deficit will be bridged and the country is run smoothly without the finance bill.
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“If we could increase our revenue collection to GDP (Gross Domestic Product) by just about 3 percent, I am sure that will give us almost Ksh400 billion additional. That will sort out a lot of our problems, bridge the budget deficit, and get the country moving forward.”