UNPACKING OF THE SUPPLEMENTARY ESTIMATES NO. I FOR FINANCIAL YEAR 2024-2025

OVERVIEW OF PROPOSED CHANGES

1.    On Friday, 12^th  July 2024, the National Treasury submitted Supplementary Estimates I for the Financial Year 2024/2025 to the National Assembly in accordance with the Constitution and the Public Finance Management Act, Cap 412A. The Supplementary Estimates Seek to rationalize the Estimates of Expenditure for FY 2024/25 approved by the National Assembly to align the Estimates with a revised fiscal framework and cater for the FY 2023/24 carryovers. A financing gap of Kshs.344.3 billion underpins the proposed revision of the Budget Estimates for FY 2024/25 due to the withdrawal of the Finance Bill, 2024, which inhibits the collection of additional revenue from various tax statutes.

2.    The Supplementary budget proposes to reduce the budget for the Ministries Department and Agencies (MDAs) of the National Government and Independent Offices, Parliament, and the Judiciary by Kshs. 156.39 billion; out of which Kshs.34.04 billion constitutes approved recurrent expenditure; and Kshs. 122.35 billion constitutes approved development expenditure. In the Consolidated Fund Services (CFS), there is an additional Kshs.23.78 billion to cater for pension arrears for ordinary pension (Kshs.5.66 billion), Commuted pension (Kshs.15.55 billion), and Public Service Superannuation Scheme (Kshs. 2.56 billion).