29/06/2024
UPDATE: The National Treasury, via advisory to the Clerk of the National Assembly already hinted at areas of possible budget cuts if Finance Bill 2024 ran into headwinds.
Which were the areas & what would the cuts as indicated then mean for the 2024/25 allocation?
During president Ruto's speech withdrawing Finance Bill 2024, he spoke to shelving the same programs that were contained in the Treasury's advisory due to the collapse of Finance Bill 2024.
· Last Mile Connectivity
· Absorption of JSS teachers
· Fertiliser subsidy program
The Education sector (including TSC) was set for a Kes 31.4 billion budget slash bringing the 2024/25 allocation to Kes 627.75 billion.
Among those to be affected at the time were the JSS allocation of Kes 18.9 billion & the Kes 1.8 billion school feeding program.
The Executive Office of the President (including State House, the Deputy President & Prime CS) was set for a Kes 951.0 million budget cut.
State House was set for a Kes 500.0 million cut while the Executive Office of the President was taking a Kes 451.0 million cut.
Labour & Social Protection was set for a Kes 5.5 billion budget cut taking its 2024/25 allocation to Kes 35.64 billion.
The main hit was coming through a Kes 5.5 billion cut in the budget for cash transfers to senior citizens.
The Health sector budget was earmarked for a Kes 4.7 billion budget cut reducing the 2024/25 allocation to Kes 126.32 billion.
The main hit was to be absorbed by the Kes 3.7 billion budget cut for medical interns
The State Department for Roads was earmarked for a Kes 15.1 billion budget cut taking its allocation to Kes 184.26 billion. This would be realised through rationalisation of ongoing roads projects.
The Agriculture sector was earmarked for a Kes 7.7 billion budget cut taking its 2024/25 allocation to Kes 64.84 billion.
The main hit was coming from a Kes 5.0 billion slash on the Fertilizer subsidy program & Kes 1.7 billion cut in the but for settlement of arrears to sugar cane farmers.
MSMEs, Trade & Investments was set for a Kes 3.6 billion budget cut taking its budget allocation to Kes 26.5 billion.
Key rationalisation areas were Kes 1.0 billion allocation for New KCC's surplus milk mop up, Kes 1.0 billion for the Coffee Cherry Fund.
Defence & Internal Security was earmarked for a Kes 9.75 billion budget cut taking its allocation to Kes 199.21 billion.
Ministry of Defence was taking lion's share of the but cut at Kes 7.75 billion.
The National Treasury was set for some steep cuts, Kes 27.7 billion down taking its 2024/25 allocation to Kes 185.15 billion.
The main hit in the Treasury budget was coming through a Kes 5.0 billion reduced allocation to the budget for settlement of pending bills.
Kenya Revenue Authority's allocation was also going down by Kes 4.7 billion.
Energy, Petroleum & Mining was set for a Kes 21.78 billion cut taking its 2024/25 allocation to Kes 80.85 billion.
The main hit was coming through a Kes 14.5 billion budget cut in the planned allocation to Last Mile Connectivity whose Phase IV targeting connecting 280,000 households in 32 counties was launched last month.
State Department for Housing was earmarked for a Kes 2.1 billion budget cut taking its 2024/25 allocation to Kes 87.57 billion.
Other indicated budget cuts were as follows:
· Counties Equitable Share takes a Kes 5.0 billion cut to Kes 395.12 billion
· Parliament allocation takes a Kes 3.15 billion cut to Kes 31.64 billion
· Judiciary allocation takes a Kes 2.0 billion cut to Kes 22.64 billion
Via Julians Amboko
