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

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  • 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
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