Home Trending news List of key areas facing budget cuts

List of key areas facing budget cuts

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High-level state offices are set to face significant budget cuts following austerity measures announced by President William Ruto after heeding calls to withdraw the Finance Bill 2024 following protests that left over 20 dead.

Thousands of youths took to the streets on Tuesday rejecting the Bill while accusing the president of forcing it on Kenyans. He subsequently sent it back to Parliament in a proclamation signed on Wednesday.

President Ruto emphasized that the withdrawal of the Bill would result in a budget deficit, with no additional taxation mechanism to finance the Sh3.9 trillion budget for the upcoming financial year. He assured that operational expenditures in the three arms of government, as well as devolved units, would be reduced.

Budget and Appropriation Chairperson Ndindi Nyoro told Members of Parliament that Treasury would have no option but to slash the budget in various sectors due to the finance deficit if the bill hits a snag.

Proposed budget cuts include Sh900 million for the provision of sanitary towels, a recurrent expenditure cut under the National Government Affirmative Action Fund (NGAAF), and a further Sh600 million cut under the medical vote.

Other proposed cuts are Sh15 billion from the National Government-Constituency Development Fund (NG-CDF) kitty, Sh15.1 billion from ongoing road projects, Sh11.6 billion from various projects under the waterworks development agencies, and a further Sh7.75 billion from Security Operations and Modernization under the Ministry of Defence

Security operations under Internal Security will be slashed by Sh2 billion, and the budget for various Regional Development Authorities will be reduced by Sh4.6 billion.

Additional proposed cuts include Sh1.85 billion from foreign relations and diplomacy, Sh800 million from ongoing TVETs and TTIs projects, Sh2.1 billion from funding for the Differentiated Unit Cost model in universities, Sh3.2 billion from the Higher Education Loans Board (HELB), and Sh3 billion from university infrastructure projects.

Infrastructure for primary and secondary schools is facing a proposed budget cut of Sh1.6 billion, the school feeding program Sh1.8 billion, Kenya Revenue Authority (KRA) Sh4.7 billion, Kenya Airways Sh1 billion, and the Civil Servants Insurance Scheme Sh1 billion

The Ethics and Anti-Corruption Commission (EACC) will lose Sh200 million, and the office of the Director of Public Prosecutions Sh195 million.

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