K9.3b budget handed down

Strong economic growth forecast

 

TREASURER and Finance Minister Peter O’Neill yesterday handed down a record K9.3 billion budget for 2011 with the theme “building the foundations for economic growth and prosperity”., The National reports.

He said it supported key medium-term development plan (MTDP) with new tax policy measures.

Total revenue and grants were projected at K9.328 billion, which was K1.08 billion higher than the revised 2010 estimate of K8.24 billion.

The budget highlights were:

* Balanced budget for 2010 and 2011;

* Strong economic growth in 2010 and 2011;

* High price of good and services worry;

* No new direct or indirect taxes;

* Tax on locally-brewed liquor;

* Wage adjustment for public servants;

* Threshold increase for first-time home buyers;

* Increased development budget to fund high priority programmes in MTDP enabling areas, especially education;

* Increased recurrent budget funding to support MTDP enablers and meet government obligations; and

* Long-term fiscal issues such as sovereign wealth funds.