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BUDGET DAY

Rotich to present Sh3.08 trillion budget to MPs next week

Counties will receive 371.6 billion, 12.1 per cent more than this financial year.

In Summary

• The Big Four agenda will take at least 14.6 per cent of the total budget estimated at Sh450 billion. 

Finance Cabinet Secretary Henry Rotich presents the budget for the year 2018/19 financial year in Parliament on June 14, 2018.
Finance Cabinet Secretary Henry Rotich presents the budget for the year 2018/19 financial year in Parliament on June 14, 2018.
Image: FILE

Treasury CS Henry Rotich will present the 2019/20 Sh3.08 trillion budget statement estimated in Parliament on June 13, this according to a notice from the ministry.

"This is to notify the general public that the Budget Statement for the Fiscal year 2019/20 will be delivered by the Cabinet Secretary, National Treasury and Planning, in the National Assembly on June 13," Treasury PS Kamau Thugge said the notice.

The next financial year's budget is expected to be 2.3 per cent lower compared to the 2018/19 budget.

 

This is mainly due to reduced allocation to consolidated funds which is expected to be Sh805.8 billion down from Sh870.6 billion.

As a share of GDP, the overall budget has reduced from 32.4 per cent to 28.6 per cent in nominal terms.

The government is expected to spend Sh2.7 trillion with the focus on implementing President Uhuru Kenyatta’s Big Four Agenda.

The Big Four agenda will take at least 14.6 per cent of the total budget.

According to estimates presented to the Parliament, the bulk of Sh374.1 billion is for implementation of the enablers while Sh76.1 billion is for the drivers, bringing the total to Sh450.9 billion.



According to budget estimates, Counties will receive 371.6 billion, 12.1 per cent more compared to what they received in the financial year ended June 30.

The Parliamentary Budget Office howsoever fears that the resources made available for implementation of the Big Four may not be adequate.

 

According to the Medium Term Plan III, approximately Sh 367.3 billion is required to implement the big four plan in 2019/20. There is a concern also, on a perceived continuous revision of targets under the four pillars.

Kenya is targeting to cut its budget deficit to 5.6 per cent of GDP in its 2019/20 fiscal year from 6.3 per cent in the current fiscal year.

This target is in line with efforts by the East African Community partners to narrow budget deficits to not more than three per cent as the bloc prepares for the monetary union in 2024.