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The Budget and Appropriations Committee led by the Vice-Chairperson, Hon. Mary Emaase (Teso South) met several stakeholders to consider the budget implementation for the first six months of the Financial Year 2023/24.
Controller of Budget, Dr. Margaret Nyakangβo, raised concern over delays in exchequer releases noting that the National Treasury has released a total of Kshs.1.44 trillion in the first six months of the Financial Year 2023/24.
Β These funds went to Ministries, Departments and Agencies (MDAs) for development and recurrent expenditure, Consolidated Fund Services and county governments, representing 33.7 percent of the revised annual net estimates. This amount is below the projected target of 50 percent release of the annual allocations.Β Β
βWe recommend that the Government enhances revenue mobilization, to enable the National Treasury release funds on time, to ensure effective implementation of the planned activities,β Dr. Nyakangβo said.
On their part, Commission on Revenue Allocation (CRA), flagged the duplication of functions between national and county governments, in the sectors of education, health, agriculture, and energy. The CRA emphasized the need to have a clear guideline on what level each function should be under, for efficient budget implementation.
The CRA also noted the need to develop the Recurrent Expenditure Budget Ceilings, based on counties' recurrent expenditure having consumed a substantial percentage of the devolved funds, to ensure that more resources go into development and service delivery to the public.
On the other hand, the Auditor-General, FCPA. Nancy Gathungu, whose office is under the Committeeβs purview, took Members through the status of budget implementation for her office, for FY 2023/24, as of March 2024.
"In this Financial Year, the office had a revised budget allocation of Kshs. 8.294 billion. The cumulative expenditure incurred up until 31st March 2024, was Kshs. 5.574 billion, which represents a 67 percent absorption rate," stated FCPA. Gathungu.
She further thanked the Committee for the additional funding of Kshs. 300 million in the Supplementary Budget I.
Β βA total of 2,438 public secondary schools, 218 Technical, Vocational Education and Training (TVETs) institutions and 201 Level 4 and Level 5 Hospitals have submitted financial statements for audit. We have since introduced an additional sub-programme for audit of hospitals and education institutions to ensure specific funding for these entities,β she added.
Β Governor of the Central Bank of Kenya, Dr. Kamau Thugge, took the Committee through the state of the economy, noting that the overall domestic inflation declined further in March 2024, driven by lower food and fuel prices.
Β "Overall inflation has declined from the peak of 9.6 percent in October 2022 to 5.7 per cent in March 2024. Food inflation was moderated by declines in prices of key non-vegetable food items particularly maize and wheat products, reflecting improved supply from ongoing harvests," said Dr. Thugge.
Β He added that based on the March 2024 Agricultural Sector Survey, the inflation is expected to decline further, within the next three months.
Β On the impact of the monetary policy measures of retaining the Central Bank rate at 13 percent, the Governor noted that this has lowered inflation, addressed the exchange rate pressures, and anchored inflationary expectations.
