Budget was kind to the ICT industry

Uhuru’s Budget is intended to stimulate business in Information Communication and Technology (ICT) and create employment.

It will now be cheaper to acquire a mobile handset though the cost of calling remains the same. With more Kenyans communicating, the Government will net more revenue in the long term if mobile phone dealers heed the minister’s call to reduce prices.

Uhuru also announced bold incentives to boost the penetration of broadband in the country following the arrival of the Teams fibre optic cable in Mombasa.

The minister reduced the cost of infrastructure for Internet service providers by allowing them to offset their taxable income against the cost incurred in purchasing fibre optic bandwidth over a 20 year period.

The Budget was kind to the ICT industry.

{David Wekesa, via e-mail}

The 2009/2010 Budget has been lauded for advocating devolution ahead of the new Constitution.

Devolved funds administered by the relevant line ministries at the constituency will invigorate rural economies, ease the pressure on the central Government and stem rural-urban migration

However, the Budget did not address some important areas. First, political parties should have been funded as is required by the Political Parties Act.

Second, an insurance fund to guarantee certain returns to farmers should have been funded. Third, the Kenya Farmers Association should have been revived to cushion farmers from the high cost of inputs.

Fourth, Finance Minister Uhuru Kenyatta should have taken note of the disproportionate populations in different constituencies and allocated funds accordingly.

Can a Supplementary Budget be done after the boundaries commission is through with its work?

Fifth, The Sh2 billion allocated to IDPs was meager when compared to the Sh31 billion meant for complete resettlement.

Sixth, Uhuru should have given funds to enable farmers to add value to their products.

Seventh, the military must come clean on the line items to be funded by the Sh44 billion allocated to Defence. We do not want another scam on our hands.

Indeed, the repeal of the Official Secrets Act is critical to having open budget processes. Military tenders should also be open and transparent.

{Kariuki Muiri, Karatina}

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