The proposed budget is Sh340 billion higher than the Sh2.26 trillion for 2016-17.
Treasury CS Henry Rotich yesterday announced drastic measures to bring down the cost of living and the cost of food, which has been shooting up.
But he also slapped a uniform 50 per cent 'sin tax' tax on all forms of betting and gaming, saying they have negative social effects.
The theme was help for wananchi.
Maize and wheat flour will be exempted from VAT.
Households, manufacturers and low-income earners were among the biggest winners in the budget presented to Parliament.
The budget also seeks to grow the manufacturing sector and create jobs.
Maize imports will be tax free for four months, a move to ease the effects of ravaging drought.
“Manufacturers, wholesaler, and retailers who sell such goods will be expected to reduce the prices of these basic commodities, failure to which, I will reverse the policy,” Rotich said.