Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-04-16 12:18:36
In a recent forecast released by the Institute of Public Finance, it has been revealed that the offices of President William Ruto and Deputy President Rigathi Gachagua are expected to receive a substantial increase in funding in the upcoming 2024/2025 budget. This announcement has sparked controversy and criticism due to the significant boost in funding for the executive branches, especially in contrast to the cuts in other crucial sectors such as education and agriculture.
The Annual National Shadow Budget unveiled by the institute on April 16 suggests a notable increase of Ksh9.8 billion for the offices of the President and Deputy President. This allocation stands in stark contrast to the substantial cuts in funding seen in other sectors, with a significant decrease of Ksh23 billion for the Ministry of Education being the most affected.
Furthermore, the forecast shows that national security is set to benefit from an additional Ksh45 billion, while the health sector will receive a moderate increase of Ksh8 billion. Conversely, the Agriculture, Real Estate, and Urban Development sector is facing a Ksh10 billion cut, with further reductions impacting General Economic and Commercial Affairs by Ksh1.5 billion.
The Public Administration and International Relations (PAIR) sector, which includes the presidency, cabinet affairs, and various ministries, is also slated for a considerable increase, with a rise of Ksh52 billion in allocations. Bernard Njiri, a Senior Research Analyst at the Institute, has expressed concern over the imbalance in funding allocation, questioning why one office should receive such a substantial increase compared to an entire sector.
The Shadow Budget projects allocations for key areas, including Ksh666 billion for education, Ksh505 billion for energy, infrastructure, and ICT, and Ksh127 billion for environment, water, and national resources. Agriculture, however, is earmarked for a comparatively lower Ksh87 billion.
The official budget is scheduled for release in June and is predicted based on past fiscal data and supplementary budgets from the Treasury. The Shadow Budget provides an early indication of the government’s fiscal priorities and strategies.
The research also highlights a concerning trend among county governments, which have consistently failed to meet their revenue collection targets, leading to reliance on national allocations. This shortfall has resulted in a significant amount of pending bills, accumulating up to Ksh445 billion by the end of 2023.
Civil rights groups have called on the government to address nearly Ksh570 billion in national pending bills and an additional Ksh165 billion owed by counties. They have also criticized the government for unnecessary overlaps and redundancies in various programs, leading to wasteful expenditures.
Another concerning trend highlighted by the institute is the low absorption rates of development budgets, with an average of 40% remaining unutilized across various programs. This underutilization points to inefficiencies and potential mismanagement within government spending.
As the country anticipates the official budget announcement, the disparities outlined in the Shadow Budget raise significant concerns about the government’s commitment to balancing national security and administrative functions with the essential needs of education, agriculture, and economic development. The allocation of funds in the budget will play a crucial role in determining the country’s priorities and development strategies in the coming fiscal year.
Read the original article on Kenyans.co.ke
