CDF gets Sh10b boost in increased budget grants

Lawmakers are set to reap big in the next financial year after the Budget and Appropriations Committee (BAC) proposed an increase of Sh10 billion for National Government Constituency Development Fund (NG-CDF) and Woman Representative Fund.

This is after the Members of Parliament (MPs) increased an additional Sh9 billion to the NG-CDF kitty after BAC increased the ceiling from Sh44 billion to Sh53 billion translating to between Sh20 million and Sh30 million per constituency while Woman Representatives through National Government Affirmative Action Fund (NGAAF) will get an additional Sh1 billion to support their operations increasing their allocation to Sh3 billion.

And to further ensure that road improvements in the constituencies that had stalled commences, the committee proposed an increase in the ceiling on road infrastructure by a whooping Sh15 billion from Sh55 billion to Sh70 billion.

BAC chairperson and Kiharu MP Ndindi Nyoro said the increase in the NG-CDF and NGAAF is to enable the lawmakers to take care of the needs of their constituents.

The increase in the Woman Reps Fund comes hardly two months after President William Ruto pledged to increase the budgetary allocation to NGAAF by a billion in the coming financial year.

“After consultations with the Executive, some of the recommendations that we have made are in tandem with the executive as they appreciate most of the work will be done through CDF. To this effect and on the ceiling it is important for the members to note that we have added an extra Sh1billion to take care of our women representatives,” he said.

Increased CDF

And added: “Something interesting that this House should take note of is that we have increased the CDF ceiling from Sh44 billion in the last financial year to Sh53 billion which means that each constituent will get an additional Sh20 to Sh30 million.”

The recommendations of BAC are contained in its report on the Budget Policy Statement which capped the ceiling for the National Government at Sh2.25 trillion out of which the executive will get Sh2.189 billion, Office of the Auditor General Sh7.698 billion while Parliament will get Sh40.4 billion which is an increase of Sh2 billion from Sh38 billion allocated in the current financial year 2020/23. The Judiciary has been given a ceiling of Sh22.994 billion an increase of about Sh4 billion from Sh18 billion allocated in the 2022/23 financial year.

The allocation to county government has been pegged at Sh 385.4 billion, allocation to equalization fund has been set at Sh7.8 billion, and allocation for county additional allocation has been set at Sh44.3 billion while the allocation of Sh4.5 billion to the Managed Equipment Service (MES) will have to be subjected to the submission of the evaluation report as per the non-financial recommendations.

To streamline service delivery within the Parliamentary Service Commission, the committee has proposed a new vote for the Senate while to enhance efficiency in responding to audit issues they have told the National Treasury to facilitate the Office of the Auditor General to have a single line budget.

Reads the report: “That, the National Treasury undertakes a sensitivity analysis on the 2023 MTDS and submits to this House, within two weeks, a contingency plan on measures to be undertaken in the event of revenue shortfalls or underperformance of loans.”

Short-term borrowing

And to enhance liquidity management and help reduce unnecessary short-term domestic borrowing occasioned by governments inability to access surplus funds held in numerous Ministries, Departments and Agencies (MDAs) bank accounts, the committee recommended that the National Treasury spearheads the integration of MDA banking arrangements into a single treasury account system as provided for in section 28(2) of the Public Finance Management (PFM) Act, 2012 and the PFM regulations. This should be submitted to Parliament within six months.

Debt ceiling

“That any borrowing undertaken by the National Treasury in FY 2023/24 should not exceed the Sh10 trillion approved debt ceiling set by Parliament,” the report reads.

With regards to specific allocations to ministries, President William Ruto’s office, Deputy President Rigathi Gachagua’s office and the office of the Prime Cabinet Secretary Musalia Mudavadi have been allocated a whooping Sh14.7 billion which is a reduction of about Sh3 billion as in the  2022/2023 financial year the presidency was allocated Sh17 billion.

Of the Sh14.7 billion, Ruto’s office has been allocated Sh 8.1 billion to take care of cabinet affairs, government advisory services and state house affairs, Rigathi’s office has been allocated Sh4.6 billion while Mudavadi’s office has been allocated Sh2 billion to support general administration planning and support services, public service performance management and delivery services as well as coordinate government functions and supervise services.

To enhance delivery and streamline operations of the two principal secretaries assigned to Mudavadi’s office, BAC has proposed a split of votes into two including performance management and delivery services as well as legislative affairs in order to enhance service delivery.