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Highlights of the Finance Bill 2020

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Highlights of the Finance Bill 2020

Posted by: Octaviah Wachira
Category: Blog

The Government of Kenya intends to finance the FY 2020/21 budget through two main sources; taxes and public debt. The Finance Bill 2020 outlines the revenue raising measures that the government plans to use to finance its budget through introducing new taxes or enhancing existing taxes targeting a wider base. Considering COVID-19 pandemic, the government of Kenya fiscal leg room is very limited. The government notes that the possible revenue to be collected in FY 2020/21 is approximately Ksh 1.85 trillion while total expenditure will be approximately Ksh 2.71 trillion leaving a financing balance of Ksh 858 billion which will be realized through grants and borrowing.