Budget Forecast: Ruto & Gachagua’s Offices to Receive More Funds, Key Sectors Left in the Cold- Report
According to a recent projection from the Institute of Public Finance, there’s a notable increase in funding earmarked for the offices of President William Ruto and Deputy President Rigathi Gachagua in the upcoming 2024/2025 budget. This move has sparked criticism for prioritizing these offices over essential sectors like education and agriculture.
The Annual National Shadow Budget, released on April 16th by the institute, shows a significant rise of Ksh9.8 billion allocated to the executive branches.
This allocation stands out distinctly from significant reductions in other areas, particularly a decrease of Ksh23 billion in funding for the Ministry of Education, marking the most significant cut among the sectors examined.
In further stirring the debate, an extra Ksh45 billion is set to bolster national security, whereas the health sector experiences a modest uptick of Ksh8 billion. Conversely, the Agriculture, Real Estate, and Urban Development domain confronts a reduction of Ksh10 billion, while General Economic and Commercial Affairs undergo a decrease of Ksh1.5 billion.
The sector of Public Administration and International Relations (PAIR), which includes the presidency, cabinet affairs, and multiple ministries, is also slated for a significant increase, with a boost of Ksh52 billion in allocations.
Bernard Njiri, a Senior Research Analyst at the Institute, expressed concern over the imbalances: “Why should one office get such a huge increase compared to a whole sector?”
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The alternate budget outlines funding plans for various important sectors: Ksh666 billion for education, Ksh505 billion for energy, infrastructure, and ICT, and Ksh127 billion for environmental, water, and natural resources. In contrast, agriculture is slated to receive a lesser amount of Ksh87 billion.
Expected to launch in June, the nation’s formal budget is forecasted using historical fiscal information and additional allocations from the Treasury. The Shadow Budget functions as an initial gauge of the administration’s fiscal preferences and tactics.
The study emphasized a concerning pattern observed in county administrations, where they persistently fall short of their revenue collection goals, heavily depending on national funding instead. This financial deficit has led to a significant backlog of unpaid bills, reaching a staggering total of Ksh445 billion by the conclusion of 2023.
Civil rights organizations have urgently demanded that the government tackle the approximately Ksh570 billion in national unpaid bills and an extra Ksh165 billion owed by counties. Furthermore, they have condemned the government for unnecessary duplications and redundancies within different programs, citing these as causes of wasteful spending.
The institute has observed another concerning pattern regarding the low utilization of development budgets, where approximately 40% on average remains unspent across different programs. This lack of spending underscores inefficiencies and the possibility of mismanagement within government expenditure.
As the nation prepares for the release of the official budget, the differences highlighted in the Shadow Budget raise significant worries regarding the government’s dedication to harmonizing national security and administrative duties with the fundamental requirements of education, agriculture, and economic progress.
Budget Forecast: Ruto & Gachagua’s Offices to Receive More Funds, Key Sectors Left in the Cold- Report