This archive report was first published on 12 September 2019.
On Thursday, the Kenyatta International Convention Centre (KICC) played host to the launch of the budget preparation for the 2020/21 financial year. The event marked the beginning of the budget-making process, with National Treasury and Planning Cabinet Secretary Amb. Ukur Yatani at the helm.
Yatani emphasized the importance of having a sustainable public debt and reducing resource wastage. He stated that the government would initiate expenditure control measures, with cuts to be made towards public resources waste.
“Today marks the start of the budget-making process of the year 2020/21. We have initiated expenditure control towards the next budget and the cuts will be brutal towards public resources waste,” Yatani said.
He further noted that the government would consider the performance of the previous year and would not allow non-core spending, but this should not affect the development agenda. Yatani emphasized that all spending must now be accompanied by supporting documents.
Yatani reflected on the fiscal performance of the FY 2018/19 budget, citing a revenue shortfall of Sh91 billion and rising expenditure pressures. To contain the resultant fiscal gap, the government has initiated revenue and expenditure measures in line with its fiscal consolidation plan.
These measures include budget rationalization on non-core expenditures, such as foreign and domestic travel, hospitality, and the purchase of office supplies. The government will issue directives on this matter in due course.
Yatani directed all accounting officers and sector working groups to work with the available budget, as there will be no more funding given. He also stated that the government is not ready to start new projects, and if there is any, it should be approved by the Cabinet.
According to the latest International Monetary Fund (IMF) forecasts, global growth is projected at 3.2 percent in 2019, with global growth expected to pick up to 3.5 percent in 2020. The government expects the budget deficit of 3.5 percent Gross Domestic Product (GDP) in 2022/23 from a high figure of 7.7 percent of GDP in 2018/19.
National Assembly Chairperson of Budget and Appropriations committee Kimani Ichung’wa highlighted the importance of prioritizing projects under the Big 4 agenda, as it was only 11 years to Vision 2030. He noted that stalled projects had become a menace, with Sh.365 billion projects stalled as per June 2018.
Ministry of National Treasury and Planning Principal Secretary (PS) Julius Muia noted that they would receive budget proposals from stakeholders, which would encourage public participation as required by article 232 section 1B of the constitution.
Published on September 12, 2019, at 9:26 PM EAT.
