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Why Government Can’t Fund Education!

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Why Government Can’t Fund Education!

“Imagine the watchman of your former school having to stay for 5 weeks without pay!” The most shameful thing for any government of the day is to fail to honor the Education commitment. What really is behind the lack of funds toward the Education? Is the government broke? From someone looking from the outside it may seem as though the Government is refusing to pay. However from an economic point of view the current government is broke. The revenue the government is collecting is much higher than the planned expenditure.

Government revenue is generated from taxes and profits from investments made by the government. If the Kenya Revenue Authority fails to collect enough taxes then the only option available is to borrow.  Currently there is no doubt that the Kenya government revenue is not enough to meet the expenditure after all if it was a matter of mistake then the government would have paid Kshs 11.3 billion required and not kshs 6.9 billion.

The last 5 years will be remembered in Kenya history as when Kenya government expanded spending with no regard to economic principles. This careless approach that has seen the Kenya shilling continue to weaken maybe felt for a long time unless the public makes a commitment to find solutions. The government budget 2012/2013 was said to have grown 4 times in 10 years or 400%. The total Gross Domestic Product GDP growth at between 1% and 7% added up in last 10years and even compounded is less than a 50% growth. This high increase has meant high food price increases as people work more and more to support government growth. 

The first economic mistake is the idea that the government can fund any budget. This was started with the members of parliament making themselves the highest paid legislators in the world as a percentage of country budget. This seems to have infected other bodies and it is no surprise that the Independent Electoral & Boundaries Commission IEBC gave a price tag of Kshs 36 billion for Kenya elections. This compared to other nations was higher between 15 times and 30 times than any other nation. The reason give was a Kenyan is very slow than other people of the world and would need 15 minutes to vote for six.    

The second economic mistake was made when the first Infrastructure bond was released to collect Kshs 18 billion collected March 2009 with a coupon of 12.5%. The economy at that time looking at all factors showed the highest the bond could be sold and still get all the 18 billion invested was 9%. However an increase of 3.5% was made purely on greed.  Since Government paying its loans has to take priority over all other things the Infrastructure bonds created with no viable system of repayment set other than from tax confers may affect the government expenditure and priorities going forward.         

The third economic mistake is captured in the complaint by developed countries that the Kenya Government expenditure on travels was too high. These developed nations could not understand how a country like Kenya with a Gross Domestic Product its size could be running expenditures higher than even some of the development nations as Government official tours. The last five years will be remembered as the time Government officials toured extensively all over the world and became Global tourists. The person paying the price the Kenyan working and can’t meet ends and the Diaspora Kenyan supplementing their budget. 

As 2013 elections approach, parents and teachers will now have to wake up and deliberate among their communities and decide whether they want to create a government of a few billionaires who will use every single way to enrich themselves or a group of responsible Kenyans.   

DUT
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