More Levies and Fees For Accessing Public Service
More Levies and Fees For Accessing Public Service
More Levies and Fees For Accessing Public Service
The National Treasury suggested that Ministries, Departments, and Agencies (MDAs) should take additional steps to reduce their excessive reliance on the exchequer. This could mean that Kenyans would soon have to pay higher levies and fees in order to obtain services from public institutions.
In order to do this, the government suggested charging more for services in the Draft 2024 Budget Policy Statement (BPS) or implementing new fees altogether.
Income received by the government from sources other than taxes is known as non-tax revenue. It is anticipated that most MDAs would eventually be self-financing. Treasury Cabinet Secretary Njuguna Ndung’u wrote in the document, “These policy strategies are expected to expand the primary surplus in the fiscal framework and stabilize the growth of public debt thereby boosting the country’s debt sustainability position.”
Although the government suggested imposing fees and charges, it stated that it would make sure they were fair and did not burden Kenyans.Based on the reaction to the State Department’s proposal to increase prices for several government services, like passport and ID issuance, the government is also eager to impose a cap on the levies and fees that MDAs charge.
Over the next four years, the Treasury wants all MDAs to not only adopt non-tax revenue measures but also transfer money to the exchequer. This will be enhanced by the implementation of the universal pay bill, 222222.
The Ministry of Lands and the State Department for Immigration and Citizen Services were among the MDAs listed to implement the new measures.
According to the BPS, by implementing the non-tax revenue measures, the government anticipates lowering the fiscal deficit to the Gross Domestic Product (GDP).
In the financial year 2024/25, the Treasury directed, all MDAs and Sector Working Groups to prepare their budgets for the hard sector ceilings and adopt the value chain approach.
According to Treasury Principal Secretary Chris Kiptoo, the policy initiatives included in the 2024 Budget Proposal are anticipated to boost economic efficiency, lower living expenses, foster investment and business growth, and improve the welfare of all Kenyans.
“The tight fiscal stance is expected to reduce debt vulnerabilities through the implementation of reforms to broaden the domestic tax base and improve tax compliance,” he stated.
