NAIROBI, Kenya, Feb 19 – The National Treasury is now proposing a total budget of Sh1.8 trillion for 2015/2016 financial year from Sh1.7trillion in the current financial year.
Presenting the Budget Policy Statement before the Senate on Thursday, Treasury Cabinet Secretary Henry Rotich said Sh283 billion will go to the counties from Sh226 billion in last budget, while Sh1.6trillion is expected to go to the national government.
“What we have proposed is almost the same as this year’s Sh1.8 trillion, with Sh283billion expected to go to the counties. That covers money for paying debt. It will also include budgets for the Judiciary, Parliament altogether. So it’s more or less the same as this financial year,” Rotich said.
The Sh283billion for the counties includes, Sh258billion equitable share, Sh15.billion from conditional grants via the national government and Sh10.7billion conditional grants from development partners.
The CS says the next financial year’s budget targets to invest more in infrastructure, tourism, security, energy and agricultural sectors.
“The various priority economic policies, structural reforms and sectoral expenditure programs outlined in the 2015 Budget Policy Statement will address challenges to economic outlook, bolster resilience to shocks and foster sustained high inclusive growth,” the CS assured.
The government is hoping to raise revenue of Sh1.2billion from taxes, with Sh1trillion of this going to recurrent expenditure which include paying wages, salaries, pension, interests among others.
The BPS gives an allocation ceiling of Sh114billion for the national security, Sh327billion for education, Sh51billion for Health and Sh385billion for Energy, Infrastructure and ICT.
Rotich cited various risks that are envisaged in the coming financial year which include public expenditure pressures, impact of security on tourism and depressed rainfall which could affect exports and agricultural production.
Continued weak growth in advanced economies may also negatively impact Kenya’s exports and tourism activities.
“The emerging pressures in some Europe countries may lead to a reversal of austerity measures currently in place and cause economic instability in the Eurozone,” he said.
The Budget Policy Statement is a document that sets out the broad strategic priorities that guide the two levels of government in preparing their budgets for the next financial year.
The CS is now expected to come up with the Budget Estimates for the 2015/16 financial year, to be ready by April this year.