We can’t give you more money, DP Gachagua tells governors
Deputy President Rigathi Gachagua yesterday insisted that the government does not have resources to match the demands of the Council of Governors (CoG) to increase the equitable share for 2023-2024 financial year to Sh425 billion.
On Wednesday, the governors through CoG vice chairperson Ahmed Abdullahi, insisted on the Sh425 billion increment of the County Shareable Revenue, up from Sh370 billion.
They accused the national Treasury of failing to build a consensus with the Commission on Revenue Allocation (CRA).
But while addressing senators during the closure of the two-day Commonwealth Parliamentary Association post election seminar for the Senate in Mombasa on Thursday, the Deputy President said the government can only afford Sh380 billion to counties.
“The issue we had with the CoG is a simple matter…they are asking for Sh425 billion. CRA is saying in our scheme of mathematics, you can give Sh407 billion. As a national government, we are saying that is good. Sh425 billion is good but we don’t have it. Sh407 billion is better but we don’t have it. We only have Sh380 billion. If you want to hang us, we are helpless. If you want to remove our trousers and whip us, you can go ahead. We don’t have the money and we are being truthful. What we don’t want to do is to cheat the governors that we will give them money that we don’t have,” Gachagua told the Senators.
Behind schedule
While admitting that the government is struggling to pay monthly disbursements to counties, the second in command said it will be a big lie for the government to promise Sh425 billion when it is clear it is experiencing problems paying Sh370 billion which was allocated in the budget.
“We are three months behind the monthly disbursements. So we are asking the governors if what was in the budget Sh370 billion we have been unable to give you, if we give you Sh 425 billion, it will just be a lie. President William Ruto and I are Christians. We swore with the Bible before God and the people of Kenya to always speak the truth,” he said, while insisting that nobody will be exempt from paying taxes under the Kenya Kwanza administration.
“One of the ways to increase the revenue share is by collecting taxes. So if you hear them making noise against tax evasion, please don’t join them,” he said.
The DP added: “Let those who have not been paying taxes not get jittery. Just make arrangements and pay in installments. You can come and we agree we pay in installments. You can pay if it is Sh1 billion every month. If you have a problem on what we are asking you to pay we are open for discussion. If you don’t want to pay tax you have to buy an advert in the newspaper and apply to the people of Kenya. The CS National Treasury will not exempt anybody from paying tax,” the Deputy President told Senators during the seminar.
According to Gachagua, currently the government collects Sh2.2 trillion against a budget of 3.6 trillion, adding that the Sh2.2 trillion is only enough to service public debt and pay salaries, forcing the government to borrow money for development.
He accused the previous government of borrowing too much, a situation, he said, had pushed the country to the brink of bankruptcy.
