Car grants, exit perks push Bunge budget above Sh50 billion

Parliament is set to get Sh11.7 billion more in the next financial year to cater for current MPs' exit packages and car grants for the new legislators.

The Budget and Appropriations Committee has set the ceiling of the legislature's allocation at Sh50.2 billion, up from Sh38.5 billion.

The report, which provides the allocation limits for the National Treasury in crafting the 2022-23 national budget, must be approved by the National Assembly.

In the report, the Kanini Kega-chaired committee defended the enhanced allocation to the bicameral House as one-off expenditures “which are unavoidable”.

The committee said the additional allocation will lapse after the August 9 general election.

The budget report on the policy statement shows that out of the Sh11.7 billion, Parliament seeks Sh4.2 billion for car grants for incoming lawmakers.

A further Sh6.67 billion will go for gratuity for exiting members and staff, Sh373 million for the post-retirement medical scheme and Sh500 million to enhance the mortgage fund.

The proposal reveals the extraneous funding needs the Jubilee government may be subjected to in the transition from President Uhuru Kenyatta's administration.

“The committee recommends the Parliamentary Service Commission budget ceiling be approved as presented by the National Treasury to cater for the one-off expenditure needs,” the committee said in a report tabled in Parliament on Tuesday.

The Kega-led team has approved Sh1.55 trillion ceiling for the national government Executive and Sh18.9 billion for the Judiciary.

Of the approved allocation to the national government, the Office of the Auditor General would be provided with as much as Sh6.4 billion in the next budget.

This would be a 25 per cent increase compared with the Sh5.2 billion that was allocated to the office in the current financial year. Auditor General Nancy Gathungu sought Sh8.4 billion.

The Budget Committee has set a Sh370 billion ceiling as equitable share for county governments, whereas Sh7.07 billion has been set as the cap for the Equalisation Fund.

Conditional grants to the devolved units have been set at Sh37 billion despite calls for rationalisation of ministry budget to fit within the available deficit window of Sh400 billion.

Whereas the BPS proposed that the budget deficit be Sh846 billion, MPs have rejected that, citing the challenges with the window for borrowing currently at Sh400 billion.

"The committee is concerned that the BPS had proposed Sh846 billion as the overall deficit which, if approved, has the potential to breach the approved debt ceiling of Sh9 trillion,” MPs said.

“The budget ceilings of the Ministries, Departments, and Agencies (MDAs) be rationalised to be within the deficit as resolved or measures be put in place to collect additional revenue,” the House team said.

“Once approved by the House, these recommendations shall form the basis of the 2022-23 budget,” the report reads.

The budget ceiling for the next financial year is estimated at Sh3.32 trillion, of which Sh864 billion would go to the Consolidated Fund Services (CFS).

MPs raised concerns that CFS accounts for 26.1 per cent of the overall budget – an increase from 20.3 per cent in the current fiscal year.

“If this trend is not reversed, it will gradually reduce the fiscal space, thereby leading to increased borrowing in order to finance the budget,” the committee said.

BAC reported that it received additional requests amounting to Sh125 billion from the departmental committees following requests by MDAs.

Among those considered in the additional provisions is the Education ministry, which is set to get Sh4 billion for CBC infrastructure.

MPs have also recommended Sh20 billion for primary schools, while the secondary schools' budget is set to be capped at Sh81 billion.

The committee has also recommended an additional Sh2.5 billion to the Teachers Service Commission for the recruitment of 500 secondary school teachers.

The commission has also been provided an additional Sh2.5 billion for teacher professional development – CBC training.

The National Intelligence Service budget has been increased by Sh3.5 billion to cater for modern intelligence equipment.

Universities are also tipped for a Sh4 billion increase for implementation of the comprehensive bargaining agreement with workers.

The Interior ministry will getSh5.8 billion more for enhanced police insurance, whereas the National Police Service Commission would be provided Sh20 million for police counselling.

MPs have also recommended Sh4.5 billion to the Health ministry for HIV commodities and response, as well as additional funds to cater to referral hospitals.

Following their requests to MPs, the EACC and DPP are set for a budget boon as well, with the proposed addition of Sh230 million and Sh400 million, respectively.

For the DPP, Sh200 million would be for poll preparedness and the rest to bolster anti-corruption efforts. the EACC is to receive Sh80 million for aspirants' integrity verification.

Some Sh150 million, should MPs approve the proposal, would go towards EACC’s targeted investigations of high-value projects while the Judiciary got Sh850 million more for court constructions and operations.

The motion to discuss the report was, however, dropped following a request by BAC chairman Kega for further consultations.

Kikuyu MP Kimani Ichung’wah and other UDA-allied MPs told Parliament that they have aligned amendments to the BPS 2022.

(Edited by V. Graham)