The focus of the budget is the achievement of a stable macroeconomic environment and continuation of the government’s policy of containing non priority and unproductive recurrent expenditure.
It will also look into shifting resources to finance development expenditure to help attain and maintain a sustainable public debt level.
The supplementary budget will cater for salary related expenditures amounting to Sh18 billion, operations and maintenance of Sh8.2 billion and Sh89.7 billion for ongoing and new projects
Additional Sh44 billion has been set aside for other projects, Sh29.1 billion for outstanding pay and additional Sh16.6 billion for devolved donor funds.
“Funding to cater for the additional expenditure will be sourced from budgetary rationalization, revenue measures through recovery of pay as you earn, domestic borrowing and rationalization of strategic interventions,” the Cabinet stated.
Meanwhile, on the pending bills the Cabinet directed ministries to ensure all carry-overs from the financial year 2012/2013 budget amounting to Sh15.9 billion are settled immediately, utilising the funds allocated under the financial year 2013/2014 budget.
As a way of containing expenses the Ministry of Devolution and Planning was also directed to freeze new recruitment, suspend adjustment of salaries and allowances and reclassification and creation of new State Corporations.
The Cabinet further approved the amended of the County Allocation of Revenue Act to factor the actual donor funding requirement for ongoing projects.