This archive report was first published on 1 November 2019.
Published on November 1, 2019, the National Treasury's budget review and outlook paper revealed the cuts, which will not affect the Sh378.4 billion in equitable and conditional allocations to the 47 county governments.
The adjustments have been triggered by revenue projection challenges for the current financial year and the Sh123 billion shortfall in revenue collection for the 2018/19 period.
According to the document, the revenue projections for the financial year 2019/20 have been revised, taking into account lower projection based on the Sh123 billion shortfall in financial year 2018/19 and revenue performance by end of August 2019.
Initially, the government planned to spend Sh3.02 trillion by the end of June 30, 2020, with a projected revenue of Sh2.09 trillion to finance the budget.
However, the projection has now been slashed to Sh1.85 trillion or 17 per cent of the country's Gross Domestic Product (GDP), given the outcome of last year's revenue shortfall and the first two months of this financial year.
The latest development means that the Treasury will now prepare supplementary estimates, which will be presented to the Cabinet for approval before being tabled in the National Assembly.
