- Budget and Appropriations Committee chair Ndindi Nyoro however said the estimates are indicative of what National Treasury Cabinet Secretary Njuguna Ndung’u will read in Parliament on June 15, 2023.
- “The figures are indicative since there may be some variation though minimal with what will be read,” Nyoro said during a meeting with officials of the National Treasury.
Image: WILLIAM RUTO/TWITTER
Details of President William Ruto’s first Budget can now be revealed.
Budget Estimates for the 2023/2024 Financial Year, which will be tabled in the House next week, have put Ruto’s expenditure plans at Sh3.599 trillion.
Budget and Appropriations Committee chair Ndindi Nyoro however said the estimates are indicative of what National Treasury Cabinet Secretary Njuguna Ndung’u will read in Parliament on June 15, 2023.
“The figures are indicative since there may be some variation though minimal with what will be read,” Nyoro said during a meeting with officials of the National Treasury.
The Kiharu MP said ordinary revenues from taxes are projected at Sh2.57 trillion while Appropriations in Aid-money collected by government agencies- are estimated at Sh322 billion.
The Kiharu MP added that grants to the government are projected at Sh42 billion.
Ndung’u told the committee the expenditures in the next fiscal period comprise recurrent of Sh2.477 trillion (15.2 per cent of the GDP) and development of Sh689.1 billion (4.2 per cent of the GDP).
The total allocation to county government is projected at Sh429.7 billion (2.6 per cent of the GDP).
“The Division of Revenue Act, 2023 allocates county governments Sh385.4 billion as their equitable revenue share. This excludes conditional grants from the national government amounting to Sh44.2 billion including loans and grants,” the CS said.
In the last Financial Year, counties received Sh370 billion as their equitable revenue share.
Ndung’u told the committee the government is faced with a budget deficit of S663.5 billion in the next financial year.
“The fiscal deficit for the Financial Year 2023/2024 will be financed by net external borrowing of S131.5 billion and net domestic borrowing of Sh532 billion,” the CS said.
Of the Sh3.599 trillion the Executive will be allocated Sh2.1 trillion with Parliament getting Sh40.4 billion) and the Judiciary ShSh22.99 billion.
Consolidated Fund Services will receive Sh986.1 billion.
The allocation to Consolidated Fund Services comprises Sh628.3 billion for domestic interest payments, Sh146.9 billion for foreign interest payments and Sh211.0 billion for pensions, salaries and allowances.
Nyoro noted the education sector will get the lion’s share in the allocations at Sh604 billion.
“The highest ticket in terms of expenditure will go to education which is Sh604 billion or 27 per cent of the entire Budget,” he explained.
“We have given the sector the biggest allocation because of the operationalisation of the Junior Secondary School. They need capitation and extra teachers. A lot of money will also go to Technical and Vocational Training,” he added.
Nyoro further noted that infrastructure, energy and ICT will also get a big share of the budget at Sh400 billion.
“We have commitments for road contracts which have already been signed. We want to pump more to concluding started projects and halt new ones,” he said.
He pointed out that Sh4.5 billion will be allocated to the fertiliser subsidy programme.
“We have also exempted VAT on the production of agricultural inputs."