The National Treasury has proposed slashing the 2022/23 budget by Sh31.1 billion with only 15 days to the end of the fiscal year.
The proposed changes were tabled on the eve of Kenya Kwanza’s maiden budget statement, which is expected on the floor of the National Assembly on Thursday afternoon.
Total spending by the national government is expected to ease slightly to Sh2.086 trillion from approved estimates of Sh2.117 trillion previously.
Development expenditure is poised to suffer the most significant reduction in the mini-budget, with its allocation projected to decrease by Sh39 billion. In stark contrast, recurrent spending is expected to surge Sh7.8 billion, according to the proposed revisions.
The exchequer will also see its budget scaled down by Sh15.4 billion.
Other big losers in the mini-budget include the State departments of infrastructure, correctional services, crop development and agricultural research, the Teachers Service Commission and the National Assembly.
Conversely, the Executive Office of the President is part of the gainers with allocation scaled up to Sh3.1 billion.
Equally, the offices of the Deputy President and the Prime Cabinet Secretary will see their budgets rise by Sh166 million and Sh81.3 million, respectively.
State departments, including the development of arid and semi-arid lands, vocational and technical training, early learning and basic education, and the ministries of environment and water, have seen their respective budgets rise.
The blanket cut on spending by the national government will, however, be offset by a Sh25 billion rise in allocations to the consolidated fund services, which cover increased debt and pension payments in the current financial year.
The inclusion of the higher debt service and pension costs means the budget cut only results in savings of Sh6 billion.
The National Assembly is set to consider the proposals and pass them before sunset on June 30.
