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 Form 4 History and Government Paper 1 Exam Sample Questions and Answers

Explain five challenges encountered in national budget in Kenya.

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Answer Text:
-Increased population requires expanded budget
-Factoring in donor aid which come with stringent conditions before disbursement of loans.
-Reduced imports earning and high interest rates which has reduced net capital flow.
-Outbreak of drought and famine which has affected the economy.
-Inadequate resources to raise revenue from which to plan the government expenditure.
-Wide spread of poverty and increased unemployment
-Misappropriation of funds where money is used for what is not intended for.
-Lack of consistency on sound economic planning.