Treasury wants MPs to approve budget
National Treasury is seeking parliamentary endorsement for Sh126 billion spent in the financial year 2021/22 without approval. Under Article 221 of the Constitution, Parliament is allowed to regularise government expenditure that has not been approved within two months of the first withdrawal from the National Treasury.
Treasury Cabinet Secretary Ukur Yatani said the estimates, which reflect a 6.5 per cent increase of the original approved ministerial budget, excluding Consolidated Fund services and county allocations, will cater for among others, the August 9 General Elections.
“The increase is largely on account of increase in Appropriation in Aid, provision of Covid-19 related expenditures, drought related expenditures, 2022 General Elections related expenditure, support to state owned enterprises among others,” said Yatani.
According to Yatani, recurrent expenditure increased by 8.9 per cent from Sh1.3 billion to 1.4 billion a difference of Sh113.3 million, while development estimates rose by 1.9 per cent to Sh681.4 million from Sh668.4 millions representing a difference of Sh13 million, keeping within the 10 per cent threshold required by the 2012 Public Finance Management Act.
In the estimates, the Independence and Electoral Boundaries Commission (IEBC), was allocated an extra Sh8.8 billion bringing the total monies allocated to Sh23.1 billion against an initial allocation of Sh14.3 billion to in the management of the electoral process.
The executive Office of the President was given an extra Sh1.9 billion, bringing the total allocation to Sh37.9 billion against Sh34.6 billion earlier approved.
Cabinet Affairs, which is domiciled within the Office of the President (OP) received an additional Sh131.5 million, bringing the total to Sh1.7 billion, while State House was allocated Sh1.7 billion for a final figure of Sh5.9 billion in what Yatani said was to increase support for enhancement of operations and maintenance.
In contrast, the deputy president’s office received a paltry Sh14.9 million, bringing the total to Sh1.43 billion, a slight change from Sh1.42 billion earlier allocated. Other notable ministries whose expenditure rose sharply in the supplementary budget include health and defence.
The ministry of health was provided with an additional Sh862.2 million bringing the total to Sh136 billion to cater for the Covid-19 vaccines funded by the World Bank and the establishment of a Covid-19 vaccine plant.
As for Defence, the amount increased by Sh14 billion to Sh134.9 billion to support security and salary related expenditure.
In his request for approval, Yatani said the ministry had adhered to the fiscal principles and the budget’s financial objectives.
He also said that the financial year 2021/22 estimates No.1 has adhered to the fiscal responsibilities as set out in the public management Act 2012, among them a minimum allocation of 30 per cent of the National Budget allocated to development expenditure, while borrowing was to finance only development expenditure.
Yatani said the National Treasury was committed to setting up of all verified pending bills and court awards as one of the criterias issued to government ministries, departments and agencies (MDAs) and sector working groups during prioritisation and allocation of resources.
“Payment of existing pending bills and court awards through issuance of long term bond may not be tenable at the moment given the prevailing fiscal environment in view of the magnitude of pending bills,” he said adding that this was constrained by the approved ceiling debt and the fiscal consolidation program that the government has committed to ensure a sustainable fiscal deficit.
He said payment of pending bills and court awards can be best implemented through the normal appropriations to MDAs as creation of a fund for such purpose would require clear justification as provided for in section 207 (b) of the PFM Regulations.
The CS said efforts are on-going to harmonise implementation of government transfer programmes including cash transfer for orphans and vulnerable children, older persons cash transfer, cash transfer for persons with severe disabilities and the hunger safety net programme, all implemented under the department of Arid and Semi Arid Land.
“Whereas it is desirable to have all the four cash transfer programmes under one umbrella body, this would require reorganisation of the government by placing institutions and related functions under one state department which is a prerogative of the President as enshrined in the constitution under Article 132 (3),” said Yatani.
He said the health ministry is expected to prepare a Cabinet Memorandum to harmonise the various existing health insurance programmes among them Linda Mama, Health Insurance Subsidy Program, OVC-CT to form one universal health care scheme to ensure efficiency and elimination of duplication that may exist.
