Question

Discuss six reasons why national government of Kenya prepares a budget.

Answer 1

• It enables the government to source for revenue to finance its activities / programs
• To enable prudent use of resources/ avoid wastage
• It enables the government to prioritize development according to the needs if the country
• It creates confidence among donors/foreign countries/ World Bank/IMF who bridge budget deficit
• It helps the government to assess its performance based on set development targets/ the previous year’s performance
• It enhances accountability/ transparency of the government in the eyes of the public / through parliamentary watchdog committees
• It enhances balance in the country’s revenue and expenditure hence avoiding budget deficit
• To enable the government explain to the public the tax structure/ set tax levels
• The government is able to set aside some funds to be used in case of emergencies in the course of the financial year
• To ensure equitable share of resources and balanced development