NAIROBI, Kenya, Mar 15 – President William Ruto’s administration has tabled its first budget in power amounting to Sh3.6 trillion for the financial year 2023/2024 with Sh700 billion of the budget to be financed through borrowing.
The budget will increase by Sh251 billion from the 2022/23 budget which stood at Sh3.39 trillion.
The government plans to spend Sh2.5 trillion on recurrent expenses and Sh769.3 billion on development.
According to the budget policy statement tabled by the Budget and Appropriation Committee Chair Ndindi Nyoro, the national government will receive Sh2.25 trillion with devolved units apportioned Sh385 billion.
In the Sh2.25 trillion, Sh2.1 trillion has been allocated to the Executive with Parliament receiving Sh40 billion and Judiciary getting an allocation of Sh22.9 billion.
The Auditor General has received a share of Sh7.6 billion, the Equalization fund Sh7.8 billion, Conditional grant Sh44 billion, and the Medical equipment scheme of Sh4.5 billion.
The government will be forced to borrow Sh 700 billion out of which Sh 198.6 billion will be raised from external sources and Sh521.5 billion from the domestic market.
Kenya Revenue Authority (KRA) has been tasked to collect Sh3 trillion in the financial year 2023/24, up from Sh2 trillion collected in the last financial year, to assist the government to cut on borrowing.
The taxman has been directed to implement various tax policy measures to boost tax collection to be in tandem with the revenue target.
While tabling the report, Nyoro stated that the budget has focused on vital pillars in the Kenya Kwanza Administration’s bottom-up economic model which include Agriculture, Health Care, and Housing.
“We foresee an economy that will be growing at 6 per cent at a time when the global economy will be growing at 2 per cent,” he said.
Further, he noted that in the 2023/2024 budget policy statements, the National Government Constituency Development Fund(NGCDF) ceiling had been increased from Sh44 billion to Sh55 billion.
“After consultations with the executive, some of the recommendations that we have made are in tandem with the executive as they appreciate most of the work will be done through CDF. To this effect and on the ceiling it is important for the members to note that we have added an extra Sh1 billion to take care of our women representatives,” he said.
“Something interesting that this house should take note of is that we have increased the CDF ceiling from Sh44 billion in the last financial year to Sh55 billion which means that each constituent will get an additional Sh20-30 million,” Nyoro added.
While seconding the motion, Kitui Central MP Makali Mulu supported the Budget Policy Statement for the year 2023/2024 but he, however, argued that in the implementation of programs by both units of government, there should be a clear framework.
“We have realized that as a result of not having a clear implementation framework, we are not able to implement most of the projects we put under conditional grants,” said Mulu.
Emuhaya MP Omboko Milemba lauded the efforts to increase the budget ceiling of the NGCDF saying it will go a long way in terms of spurring growth in the constituency level, especially in the education sector.
“We must work very hard so that we showcase because we have many distractors outside there who don’t believe in our work. We have to work very hard so as to prove that this is a better channel of getting money to the ground,” said Milemba.
Deputy Minority Leader Robert Mbui poked holes in the budget policy statement by pointing out that it’s not friendly to the common mwananchi at a time when they are battling with the high cost of living.
“The budget should be friendly to Wanjiku and Mueni and we must ensure that the priorities of this government are on things that are going to be beneficial to all our voters.”
“I have looked at this statement and I am wondering where is it that the issue of the mwananchi has been addressed, where is it that the cost of living is being brought down, or the cost of Unga is being brought down. That is why we have a date with destiny to demonstrate on March 20,” Mbui stated.
