[ANC party leader Musalia Mudavadi in a past event. He has accused Jubilee government of increasing taxes on basic commodities. Photo/nation.co.ke]
ANC leader Mudavadi has accused the Jubilee government of plotting to increase taxes to bridge a possible financing gap of Sh 1. trillion in its proposed 2.6 trillion budget.He alleged the Jubilee government was planning to plug the possible Sh 1 trillion financing gap by increasing taxes and engaging in more borrowing.At a press briefing in a Kisii hotel, Mr Mudavadi claimed that a financial gap has been created by the government through the constant borrowing and reckless expenditure."Because of careless public spending and constant borrowing, Jubilee is unable to finance the proposed sh 2.5 trillion budget. It is already deeply in debt and has a budget shortfall of almost 1 trillion," said the ANC leader."From the recent statements by the president, it's clear that Jubilee can only raise 1.7 trillion from its cash reserves. The rest will have to come from increasing taxation and borrowing, which is an indicator of harsher economic challenges for wananchi, who bear the brunt of such reckless decisions," said Mudavadi.He said one of the NASA government's first priorities would be to mitigate the financial crisis caused by the national debt that Jubilee had incurred."We're sinking deeper into debt every day because of the incompetent and inept Jubilee regime's culture of irrational borrowing to finance mega projects that will take us decades to recover from," Mr Mudavadi said.He said the country's citizens could no longer afford to incur more debts due to heavy borrowing."The Nasa government will prioritise tackling the financial gap once they take power. We are tired of inflation, poverty and other financial challenges caused by Jubilee's heavy borrowing," said the ANC party chief.Mr Mudavadi is on a two day tour of Kisii County in what he has termed 'the final call for registration'.Mr Mudavadi said Nasa's first priority is their unity, saying the coalition embraces democratic ideals that encouraged competition.