State aims to shave Sh100bn off budget cut

Parliamentary Budget and Appropriations Committee chair Mutava Musyimi (left) with Industrialisation Cabinet Secretary Adan Mohamed during a stakeholders’ meeting to deliberate on the national Budget in Nairobi on Wednesday. Photo/Diana Ngila

By GEOFFREY IRUNGU


IN SUMMARY
Treasury Cabinet Secretary Henry Rotich says the Sh100 billion reduction from the current financial year’s budget would see the adoption of asset-leasing and buying in bulk by all the ministries to bring down costs.
The number of delegations appearing before Parliamentary committees outside Nairobi will also be reduced.
Mr Rotich said the move is expected to earn the Government the trust of Kenyans who want their money spent in priority areas.

The Treasury plans to slash the national Budget to Sh1.5 trillion in the next financial year by reducing spending on travel, hospitality, office refurbishment and marketing.

Treasury Cabinet Secretary Henry Rotich said the Sh100 billion reduction from the current financial year’s budget of Sh1.6 trillion would see the adoption of asset-leasing and buying in bulk by all the ministries to bring down costs.

The number of delegations appearing before Parliamentary committees outside Nairobi will also be reduced.

Spending on consultancy services and catering will be cut, Mr Rotich said on Wednesday as he launched the process of incorporating public input into the 2014/15 Budget.

“We believe there are many opportunities to cut or minimise costs. As such, we will take a number of initiatives which will apply to State officers in both national and county governments as well as other public servants in State entities and government-owned enterprises,” said Mr Rotich.

He said the move is expected to earn the Government the trust of Kenyans who want their money spent in priority areas.

“We will issue guidelines for reducing event costs, including better use of government facilities rather than outside venues for meetings,” said Mr Rotich.

He said the wage bill was another major area of concern, with up to 13 per cent of the annual national production going to paying workers rather than development projects.

For best practice, spending on wages in central and devolved government as well as related agencies is supposed to be no more than seven per cent.

The government has announced its intention to sack over 100,000 lowly-paid workers in the coming months, with several State roles being more than duplicated following the reduction of ministries to 14 from 42.

The meetings that started on Wednesday and will run up to Friday at the Kenyatta International Convention Centre (KICC), are for stakeholders to deliberate on the national Budget and present their proposals to the public.

Wananchi will also give their proposals before the preparation of the Budget Policy Statement (BPS). The proposals are to be presented to the Treasury by January 24 so that they can be included in BPS that should be tabled in Parliament by February 15.