Parliament has increased its budget by Sh2 billion after MPs changed the
spending limit set by the Treasury for the financial year starting July 1, 2024.The Treasury had through the Budget Policy Statement (BPS) set Parliament’s budget for the financial year 2024/25 at Sh41.62 billion.
However, the Budget and Appropriations Committee (BAC) chaired by Kiharu MP Ndindi Nyoro has increased the ceiling to Sh43.62 billion after the Parliamentary Service Commission (PSC) said it needed more resources to “cater for the annual wage drift and the employer contribution to the housing levy”.
In a report on the consideration of the 2024/25 BPS, the committee also increased the budget ceiling for the Executive by Sh50 billion.
The Treasury had set the allocation for the Executive at Sh2.488 trillion in the BPS but the BAC has raised the figure to Sh2.488 trillion.
The budget ceiling for the Judiciary has been retained at Sh23.69 billion as set in the BPS that was tabled in Parliament on February 15, 2024.
The budget ceiling for the office of Auditor-General has been set at Sh8.599 billion while the county government equitable share has been retained at Sh391.117 billion.
Read: MPs increase mini-budget by Sh200bn on debt repayment
The PSC told BAC that the 2024 BPS proposes a ceiling of Sh41.623 billion as compared to Sh40.77 billion in the approved estimates for the financial year 2023/24.
“The marginal increase is not sufficient to cater for the annual wage drift and the employer contribution to the housing levy,” the PSC said in submissions to BAC.
“The proposed ceilings are against a total resource requirement of Sh65.81 billion for the financial year 2024/25.”
The PSC warned the BAC that if the situation is not remedied, the legislature will continue to be underfunded and will be unable to implement its constitutional mandate.
“Concerned by the constant underfunding of the legislature and noting the need to ensure predictability and adequacy of resources for the legislature, the commission recommended that going forward, the annual allocation to Parliament be pegged at an amount of not less than 2.5 percent (two and a half per centum) of all national government’s share of revenue as divided by the annual Division of Revenue Act enacted pursuant to Article 218 of the Constitution,” Mr Nyoro said in the report.
“A predictable allocation of funds to Parliament ensures that legislative, oversight and scrutiny of programmes are adequately funded as part of the good governance best practices for democratic societies.”
The BAC allocated Sh7.85 billion to the Equalisation Fund and a further Sh3.547 billion to cater for arrears to the fund that is meant to bring services in marginalised areas closer to those enjoyed in other areas.
The committee also recommended the additional allocations to the counties be approved at Sh48.196 billion.
“That consistent with the approved borrowing strategy in the Medium-Term Debt Management Strategy, the projected fiscal deficit be set at Sh703.87 billion (3.9 percent of GDP) being the difference between total revenues and total expenditure and net lending,” Mr Nyoro said.
“That, once approved by this House, these recommendations shall form the basis for the financial year 2024/25 budget estimates.”
Read: Budget sweeteners MPs got to pass punitive taxes
Mr Nyoro will this morning initiate debate on the report on the Budget Policy Statement for 2024/25 and the Medium Term and MPs are expected to adopt the same. The report sets the sector ceilings for ministries, departments and agencies of government (MDAs), which the Treasury will use to prepare the budget estimates.
→ emutai@ke.nationmedia.com
No comments :
Post a Comment