The President and Deputy President’s offices will be allocated Sh3 billion and Sh2 billion respectively when the National Treasury presents its Sh1.79 trillion Budget in June.
Even though both State House and the Office of the Deputy President fall under the Presidency, this will be the second time since 2013 that the two offices will be allocated separate votes.
In the last three budgets, their vote was lumped together under the allocation for the Presidency.
In this financial year, State House was allocated Sh2.94 billion while the deputy president’s office got Sh1.92 billion, meaning that allocations have been increased only marginally.
Their advisors have been allocated Sh460 million while the Cabinet Office will receive Sh2.4 billion if the proposals by the National Treasury are adopted by Parliament, which gives the Government the authority to spend money as outlined in the Budget.
BUDGET POLICY STATEMENT
Overall, education and health are among the sectors which will get a sizeable share of the Budget allocation, followed by energy and infrastructure projects.
The details are contained in the Budget Policy Statement 2016, which outlines State expenditure plans which will be tabled in Parliament by CS Henry Rotich once wananchi have given their input.
The policy statement shows that the Treasury will give the National Government Sh1.46 trillion just about the same as last year while County Governments will be given Sh290 billion.
In the 2015-2016 financial year, counties were allocated Sh264 billion, meaning that their vote has also been increased by Sh26 billion.
Parliament and Judiciary will also receive increased allocations, with the Legislature getting Sh27.7 billion up from Sh27.2 billion in the current year.
The Judiciary on the other hand will receive Sh17.7 billion, a marginal increase from the Sh17.1 billion set aside in the current financial year which ends in June.
A huge chunk of the allocations to the two levels of government as well the other arms will be channelled to recurrent expenditures.
Cumulatively, recurrent costs will amount to Sh1.09 trillion billion (or 15.0 per cent of GDP) compared with Sh989.7 billion (or 15.4 percent of GDP) in the current financial year.
Treasury projects the 2016/2017 Budget will be financed by revenue to be collected over the period, including Appropriation-in-Aid, of Sh1.5 trillion.
This is backed by expected improved revenue collection underpinned by on-going reforms in tax policy and revenue administration. It also expects ordinary revenues to rise to about Sh1.3 trillion, up from the projected Sh1.2 trillion in the current financial year.
Treasury plans to spend on social protection, health and education.
“The social sectors will receive 29.8 per cent of total discretionary expenditures,” says the Treasury.
Meanwhile the 2016/2017 period will be marked by a continuation of huge capital investments in energy, infrastructure and Information Communication Technology.
“With an overall allocation of 23.4 per cent, energy, infrastructure and ICT will be receiving the second largest share,” the statement says.
Cumulatively, energy, infrastructure and ICT will get a total of Sh373 billion, a decline from the Sh404 billion they received in the current financial year.
“This is expected to contribute and sustain economic growth of over 10 per cent per annum,” says Treasury.
Education will get a total of Sh336 billion, the same as the current financial year.
Public administration and international relations will get Sh237 billion compared to Sh243 billion in the current financial year.
The governance, justice, law and order will receive a total of Sh175 billion, up from Sh154 billion last year.
National security will take up Sh117 billion in the next financial year as compared to Sh262 billion in the 2015/2016 financial year.
Agriculture, rural and urban development will get a cumulative Sh68 billion compared to Sh79.6 billion in the current financial year.
“During the 2016/17-2018/19 period, focus will be directed at enhancing strategic food reserve, research and development, establishment of the seed and fertilizer fund, crop and cattle insurance, rehabilitate and equip regional veterinary laboratories, develop and transfer livestock, aquaculture and mari culture technologies,” says Treasury.
Meanwhile environmental protection, water and natural resources will get Sh79.3 billion compared to Sh63 billion in the current financial year.
Treasury says priority was given to on-going projects and completion of capital projects in infrastructure with high impact on poverty reduction, equity and employment creation.
Similarly, Treasury says priority was also given to adequate allocations for donor counterpart funds.
Donor counterpart funds are the portion that the Government must finance to support donor-funded projects.
Fiscal deficit (excluding grants), is projected at Sh560.8 billion against the estimated fiscal deficit of Sh595.7 billion this year.
Source:Daily Nation:Uhuru, Ruto to be given Sh5bn in June Budget
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