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I did not say the debt isn't a problem. Read my post carefully, I'm only responsible for exactly what i write not how you understand it. Government is still borrowing and keeps increasing its debt sealing when it suits it. The debt ceiling was increased to 10 trillion just 6 months ago and government is projected to exhaust that in 2 year. Its not stopping now. Government has already projected to borrow another 2 trillion in the next 2 years. The question should be what projects is government loans going in to? Government borrowed 700 billion during this corona mitigation period. Add 300 billion borrowed domestically as well. All in budgetary support. I'm struggling to find out where exactly that 1 trillion went to. Now consider 400 billion to get SGR to Malaba and this is a good investment. This is what I'm advocating for. Since government is still adamant to continue borrowing then it must be on sound development projects.

You are simply asking the wrong question
Alright.
 

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Mnadhimu Mkuu
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980 Posts
I did not say the debt isn't a problem. Read my post carefully, I'm only responsible for exactly what i write not how you understand it. Government is still borrowing and keeps increasing its debt sealing when it suits it. The debt ceiling was increased to 10 trillion just 6 months ago and government is projected to exhaust that in 2 year. Its not stopping now. Government has already projected to borrow another 2 trillion in the next 2 years. The question should be what projects is government loans going in to? Government borrowed 700 billion during this corona mitigation period. Add 300 billion borrowed domestically as well. All in budgetary support. I'm struggling to find out where exactly that 1 trillion went to. Now consider 400 billion to get SGR to Malaba and this is a good investment. This is what I'm advocating for. Since government is still adamant to continue borrowing then it must be on sound development projects.

You are simply asking the wrong question
The borrowing is being swallowed up by recurrent expenditure and debt repayment. We are in a situation where we are borrowing from Peter To pay Paul.

That is why the current borrowing is not being reflected in development projects.
 

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^^I think that debt used in productive sectors which improve productivity isn’t a problem to any economist, debt to cover recurrent expenses is a big problem though. Also borrowing from peter to pay Paul isn’t a major problem for a country, a lot of countries do this and some even have higher debt to GDP rations than we do. It’s not neat but we need all these roads and more, we need clean water, we need healthcare facilities , we need the railways for connectivity and to actually make our exports more competitive within the east, horn and Central African hinterlands.
 
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