By Caren Jeptoo and Diana Wenwa
The recently read and released, Finance Bill 2024 lays out a number of calculated allocations that should help a number of industries and organizations around the country.
The finance bill also known as a “people’s budget,” denotes significant spending intended to improve living standards and accelerate economic growth.
A new 35% tax rate would apply to high-income individuals, while start-ups would benefit from deferred taxation on employee shares.
To support affordability and environmental sustainability, liquefied petroleum gas is now VAT-exempt and residential landlords will have their taxes reduced to 7.5%.
Different industries have different VAT rates, which affects expenses and compliance needs.
Farmers stand to gain greatly from the increased financing for agricultural development in the agricultural sector.
The budget allots funds for irrigation infrastructure improvements, input subsidies for fertilizer and crops, and new farming techniques.
It is anticipated that these programs will increase food security, productivity, and the incomes of rural people who depend on agriculture.
There is a significant influx of capital into the education sector, with a focus on both infrastructure and quality enhancement. The budget allots funds for building more classrooms, recruiting more instructors, and improving instructional resources.
A significant amount has also been devoted to growing vocational training programs so that youth can obtain the skills necessary for the changing labour market.
Funding for hospitals and clinics has also been boosted, and this benefits the healthcare sector, especially in underdeveloped parts of the country.
The budget places a strong emphasis on increasing immunization programs, boosting the availability of critical medications, and improving maternity and child health services.
This pledge aims to enhance healthcare results and accessibility, especially for disadvantaged groups.
The budget includes a number of initiatives to help SMEs, which are acknowledged as the foundation of the economy. These consist of investing in company incubators, tax incentives, and simpler loan availability.
These kinds of programs aim to promote economic diversity, entrepreneurship, and job creation.
The budget’s major focus is still infrastructure, which includes large investments in public transportation, roads, and bridges. The objectives of these improvements are to lower transportation costs, improve connectivity, and draw in both foreign and domestic investment.
In conclusion, the budget includes money set aside for environmental preservation and renewable energy initiatives, demonstrating a commitment to sustainable development.
This covers financial incentives for investments in wind and solar energy in addition to initiatives for biodiversity preservation and replanting.
The FY 2024–25 budget, as outlined in the “Mwananchi Guide,” focuses on important areas that have a direct impact on the prosperity and well-being of citizens, laying a solid foundation for inclusive growth.