Revitalizing Education, Infrastructure, and Tackling Debt: President Ruto’s Ambitious Sh3.6 Trillion Budget Blueprint
Education, infrastructure, and public debt will consume the majority of President William Ruto’s initial Sh3.6 trillion spending plan, according to the Budget and Appropriations Committee (BAC).
In a rare disclosure, the committee stated that it has allocated Sh600 billion to the Education sector, Sh400 billion to infrastructure, energy, and information and communications technology, and Sh628.3 billion to domestic and foreign debt payments.
“The figures we provide are indicative but are subject to minor change. “We have allocated a total of Sh3.599 trillion for the next budget, of which ordinary revenue, which consists primarily of taxes, is projected to be Sh2.57 trillion, appropriations-in-aid that ministries will spend at source are projected to be Sh322 billion, and grants from donors are projected to be Sh42 billion,” said BAC chairman Ndindi Nyoro.
Mr. Nyoro disclosed the information during a media briefing on the examination of the Sh3.599 trillion national government budget for the fiscal year 2023/24.
According to him, Sh2.16 trillion of the total budget has been allocated to the Executive. Sh40.4 billion to Parliament, and Sh22.9 billion to the Judiciary.
County governments will receive a total of Sh385.4 billion. As their equitable share of revenue and Sh44.2 billion in conditional allocations. While Consolidated Fund Services (CFS) will receive Sh986.2 billion.
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The committee, which will present its final report on Tuesday. In advance of the reading of the budget in Parliament on June 15. Reported a Sh680 billion budget deficit to be financed by domestic and international borrowing.
Mr. Nyoro stated, “We have allocated Sh1.5 trillion for the national government’s recurrent expenditures, including the Executive, Parliament, and Judiciary.”
He added that Sh728 billion has been budgeted for development projects during the fiscal year beginning July 1.
Cabinet Secretary of the National Treasury, Njuguna Ndung’u. Informed BAC that the CFS allocation consists of Sh628,3 billion for domestic interest payments, Sh146,9 billion for foreign interest payments, and Sh210 billion for pensions, salaries, and allowances.
Prof. Ndung’u stated that the total recurrent expenditures of Sh2.477 trillion represent 15.5% of the Gross Domestic Product (GDP). Whereas development expenditures are Sh689.1 billion (4.2%) of the GDP.
“The total allocation to county governments is estimated at Sh429.7 billion (2.6% of GDP), while the allocation to the Contingency Fund is estimated at Sh2.8 billion,” said Prof. Ndung’u.
In 2023/24, the fiscal deficit, inclusive of grants, is projected to be Sh663.5 billion. Or 4.1% of GDP, given the commitment to contain expenditures and the revenue recovery measures implemented.
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External borrowings net
Prof. Njuguna stated that the fiscal deficit for the fiscal year 2023/24 will be financed by net external borrowing. Of Sh131.5 billion (0.8% of GDP) and net domestic borrowing of Sh532 billion (3.3% of GDP).
Mr. Nyoro disclosed that the BAC has allotted Sh604 billion to the Education sector due to the increased allocation to junior secondary schools.
“Twenty-seven percent of the national budget is devoted to the education sector, which has received the largest allocation.” We have invested in the hiring of tutors for technical vocational education training, and universities have also received additional resources,” said Mr. Nyoro.
He stated that infrastructure, roads, energy, and ICT will receive Sh400 billion, the second-highest budgetary allocation.
“We have increased funding for roads where contractors have signed contracts worth more than 900 billion Kenyan shillings.” We have reduced these to 600 billion shillings. Mr. Nyoro stated, “We are investing more money in roads and suspending all new projects.”
“We do not want capital projects to fail. We intend to finish all unfinished roads.” Mr. Nyoro stated that the BAC has increased funding for ten value chain projects, including agriculture, where Sh4.5 billion has been allocated for fertilizer subsidies and digitalization.
The committee stated that it is monitoring the public debt to ensure that the government does not incur excessive debt.
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“We are currently dealing with a ten-trillion-shilling number, which is both prohibitive and limiting. There are proposals to shift the debt anchor for the Sh16 trillion GDR to 55%. This is a matter for the legislature,” Mr. Nyoro stated.
Revitalizing Education, Infrastructure, and Tackling Debt: President Ruto’s Ambitious Sh3.6 Trillion Budget Blueprint
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