News and Events

Overall Analysis of the 2013/14 Budget

The Key Message

 

1. In terms of documentation that are supposed to be submitted in line the Public Finance management

Act, the compliance rate was 53 percent, implying that most of the documentation required for

effective scrutiny of the budget estimates has not been submitted.

2. The failure by the Government to publish the PFM Act regulations is causing confusion, for instance,

the format of the estimates by the three arms of government varied. Parliament and Judiciary

submitted their budget based on line item framework while the executive submitted it’s budged

based on programmes.

3. Development expenditure threshold of 30 percent as provided for in Section 15 (2) of the PFM Act

has not been met. The current allocation stands on average at 28.75 percent implying that some

vote have very low allocation for capital spending.

4. The absence of the figures for 2012/13 budget makes it difficult to make comparison in areas where

there are increases/ decreases, especially the extent to which some functions have been devolved.

To this end, it seems the Treasury is not sure of the projected performance of revenues as well as

expenditure outlay for 2012/13.

5. The 2013/14 budget is not fully funded; there is a financing gap of Kshs.163.44 billion.

6. 42.91 percent of total recurrent expenditure goes towards compensation to employees, implying that

fewer resources are ploughed back for investment purposes.

7. Addressing the issue of wage bill which consumes a high percentage of recurrent expenditure needs

a holistic approach. Indeed, out of the Kshs.225 billion allocated to state corporations in the 2012/13

budget, 60 percent or Kshs.135 billion was spent on compensating employees

8. The National Government has allocated money to some functions which are constitutionally

devolved.

9. The programme budget as presented in its current format seems to be a conversion of the various

departments in the Ministries into programmes. Thus, in many instances the outputs are not clear

neither are they measurable.

10. National entities are required to prepare and submit their estimates to parent line ministries which

should be considered alongside other budget documents. An annex is expected to be published and

added to the budget, this is lacking.

11. There is no sufficient disclosure with regard to money being collected and used at source

(Appropriations in Aid (AIA)).

12. The development expenditure as presented does not provide details of the source of donor financing

in terms of grants or loans.

 

To view full "Overall Analysis of the 2013/14 Budget" please click here.

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The Clerk 
Senate
Tel: 254 2 2221291 or 2848000
Fax: 254 2 2243694

The Clerk
Kenya National Assembly
Tel: 254 2 2221291 or 2848000
Fax: 254 2 2243694

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