All The Budget Analysis You Need

The government needs money to run the country, more so when donor funds are not forthcoming.

So far the country has one thing going for it. A strong shilling which has cushioned the public from spiraling oil prices.

So the budget's main focus and where it will affect Kenyans most is where Finance Minister Amos Kimunya seeks to raise revenue to finance government expenditure over the coming year.

Possible areas that might suffer increased taxation include the mobile phone industry and imports. Cigarettes will most probably be left alone in view of recent developments that threaten its' current revenues in an unprecedented way. This is the banning of smoking in public places.

There is also increased pressure on the government to seek new revenue sources especially after KRA recently reported it's first bad year since President Kibaki's administration came to power. During the nine months to March this year, the taxman recorded a shortfall of Shs 7.4 billion having collected shs 215.1 billion against a target of shs 222.5 billion.

Some analysts believe that this could be a budget of surprises as the general elections are too dangerously close to upset the voters too much with some unpopular tax increaments.