Home ECONOMY Inside Rotich’s Sh3.1trn budget – Business Daily

Inside Rotich’s Sh3.1trn budget – Business Daily

by biasharadigest

Inside Rotich’s Sh3.1trn budget

Treasury CS Henry Rotich
Treasury CS Henry Rotich. FILE PHOTO | NMG 

National Treasury CS Henry Rotich will this afternoon present a Sh3.1 trillion for the financial year starting next month with the bulk of spending used in repaying debt and recurrent spending on items like salaries, travel and entertainment.

Recurrent expenditure, mainly for paying salaries and allowances, will be Sh1.226 trillion after Parliament revised it upwards from Treasury’s Sh1.212 trillion.

Development spending on items like road upgrades, dam building and power transmission will consume Sh701 billion, almost equal the Sh696.5 billion that will be used to repay debt in the upcoming financial year.

The government will receive Sh1.841 trillion while the consolidated fund services (CFS) — which is used to pay debt, president’s pay and debt, will eat Sh805.8 billion as counties get Sh371.6 billion.

Parliament will get Sh40.5 billion while Judiciary will spend Sh18.8 billion in what will trigger fresh debate on why MPs get double the allocation offered to the courts — which has countrywide presence.

President Uhuru Kenyatta’s Big four agenda is expected to spend Sh450.2 billion, being 14.6 per cent of total budget.

Manufacturing will have Sh96.6 billion with key priority being support to small and medium enterprises (SMEs), industrial research and construction of industrial parks.

Universal Health Coverage (UHC) is expected to consume Sh47.8 billion as managed equipment services gets Sh6.2 billion. Affordable housing will get Sh11.4 billion, with Sh5 billion going forward the national housing development fund.

Parliamentary budget and appropriation committee (BAC) cautions against cutting of development budget as it happened during last September’s supplementary budget.

CFS expenses are set to drop from Sh962.56 billion to Sh805.8 billion helped by reduced debt repayment in the coming financial year.

Public debt servicing costs are expected to drop by 25 per cent to Sh696.5 billion from the current financial year’s Sh870.6 billion. This cost is equivalent to 86 per cent of CFS expenses, showing the extent of debt burden.

“It is important for the country to be extremely cautious on how much external debt stock we accumulate. Resources raised from debt must be utilised efficiently and productively,” advised BAC on the budget.

For dispensation of justice, Judiciary has been given Sh18.88 billion. This is backed by Sh2.966 billion allocation to Ethics and Anti-Corruption Commission, Sh2.94 billion for the office of director of public prosecution and Sh481.6 million for the Witness Protection Agency.

State department for social protection, pension and senior citizens affairs will spend Sh34.3 billion, up by Sh1 billion what Treasury had proposed.

In mining, Sh181 million will be used on mineral mapping activities while Sh389.4 million will go to mineral resources management. Exploration and distribution of oil and gas has been allocated Sh5.707 billion with Kenya currently searching for market of its oil from Turkana fields.

Other allocations include Sh5.72 billion for standards and business incubation under the ministry of industrialisation.

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