Home ECONOMY State defies austerity measures as Q1 salaries, allowances up Sh10bn

State defies austerity measures as Q1 salaries, allowances up Sh10bn

by biasharadigest
Economy

State defies austerity measures as Q1 salaries, allowances up Sh10bn

The National Treasury building in Nairobi
The National Treasury building in Nairobi. FILE PHOTO | NMG 

Ministries, departments and agencies (MDAs) spending on salaries, allowances and other benefits jumped 11 percent to Sh98.8 billion in three months to September, official data shows.

Data by the Controller of Budgets show that this was a rise from Sh88.7 billion spent by the 73 MDAs in a similar period in the 2018/19 financial year amid efforts by the State to cut down on perks like allowances.

The expenditure includes basic salaries for permanent employees, wages for temporary employees, personal allowances paid as part of salary and employer contributions to compulsory national social security schemes.

The rise in expenditure on salaries and allowances shines the spotlight on the push for austerity measures that target non-core spending.

“The total expenditure under personnel emoluments was Sh98.8 billion. TSC (Teachers Service Commission) recorded the highest expenditure at Sh59.9 billion, representing 60.6 percent of the total expenditure on Personnel Emolument,” CoB said in the report.

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This was a rise of 2.9 percent from the Sh58.1 billion spent by the commission in the first quarter of 2018/19 when it was also the leading in salaries, allowances and other benefits.

The TSC is the single-biggest State employer with 317,069 registered teachers on the government payroll as of June last year.

In the period under review, the Interior ministry recorded the sharpest rise in spending on salaries and perks at Sh18.54 billion a growth of 82 percent from Sh10.18 billion in a similar period in the 2018/19 year.

The data shows that others with sharp rises include the Parliamentary Service Commission that spent Sh1.13 billion.

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