Parliament wants 2021/22 fiscal year budget reduced to Ksh.2 trillion
The national assembly’s budget and appropriations committee has asked the National Treasury to revise down the 2021/2022 fiscal year budget to Ksh.2 trillion.
The legislators tabled their recommendations on the budget policy statement proposed by the National treasury early this year.
Also among the issues, that atoped the team’s recommendation was that Cabinet Secretary Ukur Yatani’s led Treasury to reduces the domestic borrowing by Ksh.193 billion.
“Consistent with the debt mix that ensures there is low cost and minimises risk, net foreign financing be limited to Sh530 billion while net domestic financing be set at Sh399 billion,” the committee said.
The budget committee wants the Kenya Revenue Authority (KRA) to be tasked to collect at least Ksh.1.775.6 trillion in the next fiscal year.
As a measure to protect revenue collection in the country, the committee also wants the Treasury to develop a policy to enable the reduction of unproductive and non-targeted tax waivers and tax breaks.
The committee further said it will not allow a budget deficit of more than ksh.930 billion, an equivalent of 7.5 percent of Kenya’s Gross Domestic Product (GDP).
Nonetheless, the Treasury has also been asked to restructure state-owned enterprises, especially highly indebted ones that are unable to meet their operational costs with a view to privatising some of them by the end of June 2022 in order to put them on a sound economic footing.
CS Yatani will also have to review all government projects and consider deferring new projects by one financial year while ensuring adequate counterpart funding and provision of funds for stalled projects before the finalisation of the budget estimates for 2021/2022.
Under the 2019/2020 fiscal year budget, CS Yatani lowered the revenue slightly under Ksh.3 trillion that was approved in the first supplementary budget in December 2019
The Government revised to lower allocations to Ksh.1.83 trillion from Ksh.2 trillion in the 2019/20 financial year with all of the Executive, Judiciary and Parliament exhibiting cuts to appropriations to Ksh.1.78 trillion, Ksh.18.1 billion and Ksh.36.2 billion respectively.