10 causes of growth of government expenditure in Kenya
The following are some of the causes of growth of government expenditure in Kenya:
1) Rapid population growth
When population is growing rapidly, it leads to increased government expenditure. This is because all mouths have to be fed, all sick people have to be treated and provided shelter.
2) Urbanization – Urbanization has results in ever increasing government expenditure on items such as courts, railways, roads, education, public health, electricity, libraries and water.
3) Defense – This government expenditure item is important because it minimizes the possibility of external threats or aggression. When terrorists and other aggressive neighbouring countries know that you have a well equipped military, they stay away and do not even attempt to attack because they know the consequences which can befall them.
4) Social Security spending – Through government expenditure, vulnerable citizens of a given country such as old and People Living with disability (PLwD) are provided with regular financial and sometimes material assistance.
5) Price rises through inflation
Inflation is one of the macroeconomic problems which lead to increase in government expenditure in Kenya. Inflation is the general rise of prices in the economy.
6) Public utility service
7) Public debt – Governments expenditure in Kenya is fast expanding as a result of public debt. The country has to spend money on servicing the ever increasing loans.
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8) Burden of democracy – Conducting elections is an expensive affair, paying elected and nominated leaders, maintaining embassies abroad are among some of the democratic activities which lead to increased government spending in Kenya.
9) Participation in global affairs
When a country participates in the global affairs such as being a member of United Nations agencies such as World Health Organization (WHO), World Bank Group (WBG) and International Monetary Fund (IMF) among others comes at a cost.
10) Wastage and misappropriation of public revenues
Corruption is a contributor towards increased government expenditure in Kenya. If it were not to squandering of public resources surely we would be more developed than the situation we have now.