Question

State three reasons why the government of Kenya prepares a national budget.

Answer 1

1. The budget helps the government to prioritize its needs
2. The budget enables the government to identify resources of the government revenue
3. The government identifies the development projects to finance in the coming financial year
4. It helps the government to balance its revenue and expenditure deeds.
5. For the government to determine and explain the public the tax structure
6. The government can access its performance in the previous budget
7. The budget ensures balanced and equitable developments in the country
8. Supplementary expenditure enables the government to plan for certain need stat emerges in the counter of the years e.g. diseases outbreak , floods , locust