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Government cuts budget to Sh 2.9 trillion

CS Treasury Henry Rotich

The government has proposed to slash its Sh3.026 trillion budget for the current financial year by Sh55 billion, a move that will affect key sectors of the economy.

The supplementary budget estimates prepared by National Treasury Cabinet Secretary Henry Rotich was tabled by majority leader Aden Duale during a special sitting of the National Assembly on Tuesday.

The proposed budget estimates is expected to be tabled back to the House for adoption on Thursday.

If adopted by the MPs on Thursday – during the second special sitting, the budget will reduce to Sh2.971 trillion as the government fights to bridge the huge deficit because it is only able to raise about Sh1.6 trillion.

Losers
Some of key sectors that have their budget slashed are the Devolution ministry (Sh6 billion), National Treasury (Sh6 billion), the Information and Communication Technology ministry (Sh5.9 billion), Energy (Sh2.6 billion), Infrastructure ministry ( Sh8.7 billion), Foreign Affairs ministry (Sh179.5 million).

The Education sector will lose Sh 2.925 billion, Housing (Sh 80 million), Office of Auditor General (Sh 110 million) and Controller of Budget (Sh 15 million).

The Sh36 billion allocated to Parliament will also reduce by Sh5 billion while the National Lands Commission (NLC) will lose Sh50.4 million

Survivors
These are sectors that survived the budget cut.

The Sh32 billion allocated to the National Intelligence Service (NIS) remained intact and so was the case with Sh2.9 billion for the Ethics and Anti-Corruption Commission( EACC).

The cuts are on the backdrop of difficulties by the country to meet its financial obligations in a bid to cure the growing foreign debt that has surpassed Sh5.1 trillion as at June 30, 2017.

Despite accusations by critics over the spiraling corruption in the public institutions and government borrowing, Rotich has promised to ensure that up to 30 percent of the national budget is allocated to development.

Rotich said that the national government’s borrowing shall be used only for the purposes of financing development expenditure and not for recurrent expenditure.

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