PUBLIC DEBT COMMITTEE BRIEFED ON CO𝗡SOLIDATED FUND SERVICES EXPENDITURE FOR THE 2023/2024 FINANCIAL YEAR
The Public Debt and Privatization Committee chaired by Hon. Abdi Shurie (Balambala) has been briefed by the Parliamentary Budget Office on the Consolidated Fund Services (CFS) Expenditure for Financial Year 2023/24.
According to a report by PBO, the overall budget for the Financial Year 2023/24 is projected to reach Kshs. 3.599 trillion or 22.1 percent of the Gross Domestic Product (GDP). This is made up of Kshs2.48 trillion in recurrent expenditure and Kshs 689.1 billion in development expenditure.
The expected total cost of the Consolidated Fund Services (CFS) Expenditures for Financial Year 2023/24, is Kshs.1.8 trillion, an increase of Kshs. 766 billion from Financial Year 2020/21. This amount is projected to reach Kshs. 2.2 trillion by June 2027. The increase in CFS Expenses is driven by servicing of public debt in line with the annual borrowing, which has relied more on domestic and commercial financing.
Further, expenditure on pensions which amounts to Kshs.189.09 billion will account for 10 percent of CFS expenditures. Also included under CFS expenditures is payment for the Kenya Airways guaranteed debt, amounting to Kshs. 17.19 billion. and expenditures related to salaries and allowances for independent and constitutional offices along with other miscellaneous costs, which will amount to Kshs. 4.74 billion.
The fiscal deficit for Financial Year 2023/24 is forecasted to reach Kshs. 663.7 billion, which is a decline from the Financial Year 2022/23 amount of Kshs. 824.1 billion. The fiscal deficit is to be financed through net domestic borrowing at Kshs. 532 billion, at 80 percent, and net foreign borrowing, of Kshs. 131.39 billion at 20 percent.