Treasury CS John Mbadi ahead of budget reading on June 12, 2025/EZEKIEL AMING'A
Treasury
seeks an additional Sh18.9 billion in a supplementary budget to close a
widening revenue shortfall that threatens critical operations.
The
country experienced a record Sh253 billion shortfall as at April this year,
meaning the government will opt for more borrowing to bridge the deficit.
In
Supplementary Budget 3, tabled in the National Assembly on Wednesday,
Treasury
recorded a Sh195.3 billion shortfall in ordinary revenue and Sh57.7 billion in
Appropriation in Aid (AIA).
The
government collected Sh2.2 trillion against a target of Sh2.5 trillion in
April.
Since
the last supplementary budget in March, Treasury CS John Mbadi said he has
received additional funding requests for pressing priorities.
“Included
in the Financial Year Supplementary Estimates No 3 is additional expenditure to
cater for salaries shortfall, security-related interventions, among other priorities,”
the CS said in documents tabled in Parliament.
“The
execution of the FY 2024-25 budget has faced challenges regarding
resource-raising and emerging expenditure pressure,” Mbadi said.
The
new request comes almost two weeks before the beginning of the 2025-26
financial year, in which the government seeks to raise Sh3.3 trillion in
revenue.
The
supplementary budget, Mbadi said, is essential to ensure the continuity of
critical public services, including health, education, and infrastructure development.
The
Treasury Ministry also incurred Sh34 billion expenditure under Article 223 of
the Constitution since March, when the second mini-budget was approved by the
National Assembly.
This
comprised Sh28.5 billion under recurrent expenditure and Sh5.5 billion under
the development budget, out of which Sh23.2 billion has already been disbursed.
“Due
to adjustments in the FY 2024-2025 supplementary No 2, some programmes have
exceeded the 10 per cent threshold,” Mbadi said.
“The
National Treasury is therefore requesting special approval of the expenditure
adjustments, which are beyond the 10 per cent threshold in accordance with
regulation 40 (9) of the Public Finance Management regulations 2015.”
The
estimates tabled in the National Assembly show that the gross ministerial
expenditure for FY 2024-25 has decreased by 0.5 per cent from the original
ministerial estimates.
Of
the Sh18.9 billion being sought, the Ministries, Departments, and Agencies
(MDAs) that have received additional funding include the National Treasury’s
Sh5.85 billion increase.
The
State Department for Social Protection and Senior Citizens received an Sh12.5
billion increase, raising the total allocation to Sh47.8 billion. Due to
development partners’ projects, the Housing Department gets an additional
Sh7.787 billion from the initial Sh74.7 billion. Water and Sanitation has an
additional Sh3.1 billion on top of Sh30.2 billion.
Other
departments with increased allocation are the National Intelligence Service
(Sh3 billion increase) and the State Department for Lands and Physical
Planning, which gets Sh1 billion above the Sh8.7 billion initial figure.
The
State Department for Information Communication got Sh2.2 billion (from the
initial Sh12.1 billion), while the Sports docket got Sh1.69 billion. The Office
of the President received Sh60 million, while the Office of the Deputy
President will bag Sh100 million above the initial Sh3.018 billion.
The
National Police Service has an additional Sh944.27 million, increasing the
allocation for the year to Sh116.37 billion.
The
State Department for Higher Education gets Sh3.47 billion, adding up to Sh139.7
billion.
