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Message: [QUOTE="Munyaradzi Mafaro, post: 47100, member: 636"] Kenya faces a major money shortage as tax collectors miss their goals for the current budget year. The Kenya Revenue Authority brought in 2.26 trillion shillings through April against a target of 2.51 trillion shillings. Officials must find 253 billion shillings before the financial year ends. Treasury Cabinet Secretary John Mbadi told Parliament the government will need to borrow more money both at home and abroad. The shortfall forces Kenya to change its spending plans for the remaining months. Government leaders have lowered their revenue expectations to 2.49 trillion shillings from 2.58 trillion shillings. Mbadi blamed the poor performance on ordinary revenue falling short by 195.3 billion shillings. Internal revenues from government departments also missed targets by 57.7 billion shillings. The Treasury ruled out raising taxes again because citizens already face heavy burdens. Borrowing remains the only way to pay for government operations through June. The budget deficit will grow to 797.7 billion shillings and exceed limits set by Parliament last July. Kenya already borrowed 220 billion shillings more than lawmakers approved for domestic markets. The government plans to borrow 441.8 billion shillings from foreign lenders and 355.9 billion shillings locally. Principal Secretary Chris Kiptoo warned Parliament in March that domestic borrowing had crossed legal limits. More debt will add pressure to Kenya's 10.6 trillion shilling debt load that equals 63 percent of the economy. [/QUOTE]

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