- The target is for the exchequer to shrink its Budget hole to Sh663 billion by June 2025.
- State agencies and ministries are therefore required to present their proposals to Treasury by August 30.
The National Treasury has asked the public to submit proposals on economic policy measures for the next financial year ahead of the 2022 General Elections.
In a notice, the exchequer said the budget-making process for the 2022/23 financial year will start in August as opposed to the usual September date.
“Cognisant that the year 2022 is an election year, there is need to fast-track the National Fiscal budget process to ensure smooth government operations,'' the notice reads in part.
State agencies and ministries are required to present their proposals by August 30.
Ordinarily, they have until November 25 to draft and present the budget proposals for public participation.
The National Treasury usually has until February 15 to present the Draft Policy Statement to Parliament for debate.
Bringing forward the process gives the government four months to review the budget proposals as well as the Finance Bill usually tabled in parliament by June 10.
The National Treasury said it is imperative that the process of preparing the 2022 Finance Bill begins early enough to ensure that the Finance Act, 2022 is enacted before Parliament breaks in preparation for the General Election.
The preparation of the Finance Bill, 2022 will commence in August 2021 with the submission of the proposed law scheduled for January next year.
Parliament is expected to wind up its sessions at least three months to the General Elections scheduled for August 9, 2022.
The notice comes less than a month after the government started implementing the Sh3.6 trillion budget for the 2021/2022 financial year.
This is expected to pile pressure on ministries, State departments and counties to expedite their planned operations for the current fiscal year.
Kenya plans to raise its budgetary expenditure by Sh300 billion in the coming financial year to hit Sh3.9 trillion.
According to estimates contained in the 2021 Budget Policy Statement (BPS), the country is planning to minimise the budget deficit through effective revenue collection.
It has projected a total revenue collection of Sh2.4 trillion in the financial year under review. Net spending in the period is projected at Sh3.2 trillion while debt redemption stands at Sh715.7 billion.
It is expected to lower borrowing to Sh775.3 billion in 2022/23 compared to close to Sh1 trillion in the current financial period.
The target is for the exchequer to shrink its budget deficit to Sh663 billion by June 2025.
The upcoming budget planning process will see members of the public, government agencies and private institutions give views on Post Covid-19 recovery policies.
Recommendations to be embedded in the budget requires to resonate with the Economic Recovery Strategy (ERS) which aimed at steering post-Covid-19 recovery plans.