Country Rankings - East African Community (EAC)
Jun 27, 2013 East African Community (EAC): loves taxThe East African Community member nations, Kenya, Uganda, Tanzania and Rwanda, seem to be firmly wedded to the "tax and spend" model of fiscal governance, using their communal June budget to raise taxes on trade, transport, gaming and minerals. It's not that easy to get reliable figures for government finances in that region, but in Kenya, for instance, the deficit is 7.9 percent of GDP and debt is about 55 percent. Those figures don't look that scary when set alongside European figures; but these are undeveloped countries without substantial indigenous wealth, so they are highly dependent on trade and exports, and those sectors ought to be sacrosanct, instead of which the governments seem to be milking them to support ever-increasing spending. "To fund growing infrastructure and economic development expenditure," says the hand-out, blandly. The perennial problem in Africa is corruption, of course, and many recent reports have emphasized the damage that is being done to development by rent-seeking behaviour, whether official or private (and it's often hard to discern the difference). Just when Africa has started to drag itself out of post-colonial desuetude, it would be a catastrophe if runaway government was allowed to spike progress. The signs are worrying.
Source: The East African Community member nations, Kenya, Uganda, Tanzania and Rwanda, held their Budget Day on June 13 for the 2013/14 fiscal year, and all raised taxes to fund growing infrastructure and economic development expenditure.