The National Assembly has initiated steps to reduce the budget of the three arms of government by Sh156.39 billion, a proposal put forth recently by President William Ruto. Following the submission of budget estimates to the Assembly on July 12 by the National Treasury Principal Secretary, the public has been invited to submit their views on Supplementary Estimates 1 for the financial year 2024/2025.
These submissions include the Programme Based Budget, recurrent estimates, development estimates, and a memo on supplementary budget estimates 1. Speaker of the National Assembly Moses Wetangula has directed the Budget and Appropriation Committee, chaired by Ndindi Nyoro, to review the proposals.
The aim of Supplementary Estimates 1 is to implement necessary austerity measures and effect expenditure reductions across the three arms of Government, Constitutional Commissions, and Independent Offices. The proposed cuts amount to Sh156.39 billion, with Sh34.04 billion allocated for recurrent expenditure and Sh122.35 billion for development expenditure.
“This is a 6.6 decrease in expenditures approved in the estimates for Financial year 2024/25 and seeks to rationalize the approved estimates for this year,”
The budget for the 2024/25 financial year was originally intended to be financed through additional revenue measures totaling Sh344 billion outlined in the 2024 Finance Bill, which President Ruto chose not to sign, leaving a corresponding financial gap. His decision came shortly after Parliament passed the Bill, despite widespread protests across the country that resulted in several reported fatalities.
In response to public concerns, Ndindi Nyoro’s committee is expected to gather feedback from Kenyans until July 22, consolidating suggestions and amendments for review by the House. The supplementary estimates aim to implement necessary austerity measures and achieve expenditure cuts across government sectors.
These proposed measures coincide with projections of reduced revenue from 18.5% to 17.5% of GDP, alongside a planned decrease in expenditure from 22.1% to address an expected increase in the overall fiscal deficit, including grants, from 3.3% to 3.6% of GDP.
President Ruto, under pressure from national protests, agreed to reduce the budget of his office and other executive offices. This move aims to enforce fiscal discipline, directing resources primarily to essential projects.
It aligns with National Assembly approvals and addresses carryovers or balances brought forward from the 2023/24 fiscal year. The process adheres to Article 118(1)(b) of the Constitution, ensuring parliamentary facilitation of public participation in these matters.
This includes the involvement of legislative and other business of Parliament and its House Committees thereto vital in overseeing the collection of public suggestions.
the notice states. Further, the estimates seek to rationalise the expenditure for the financial year 2024/2025, to align with the revised fiscal framework and cater for the financial year 2023/2024 carryovers.
