The National Budget 2024/25 preparation process as well as the Medium Term Plan will be rolled out by Kenya’s National Treasury and Planning Ministry this Friday, 18th August 2023. The template will be launched at the Kenya School of Monetary Studies. The document is being prepared against the backdrop of deafening noise surrounding the Finance Act 2023, which has been the subject of many legal battles and political feuds.
According to Treasury, this process is being undertaken in accordance with Article 201 of the Constitution and Section 35(2) of the Public Finance Management Act 2012 which requires public participation in all public finance matters.
The public can also follow the proceedings through a link to be posted on the National Treasury website and its social media handles.
This budget-making process in Kenya begins in August of the current financial year, now 2023/24, and ends in December of the coming financial year. A financial year is the period that governments use for accounting and budgeting.
Section 35 of the Public Finance Management Act guides the national process which begins with the national government submitting an integrated development plan which should include both long-term and medium-term goals.
The next phase is planning and determining financial and economic policies and priorities at the national level over the medium term; preparing overall estimates in the form of the Budget Policy Statement of national government revenues and expenditures; and adoption of the Budget Policy Statement by Parliament as a basis for future deliberations.
The process then moves to the preparation of budget estimates for the national government, and submitting those estimates to the National Assembly for approval.
Parliament then enacts the Appropriation Bill and any other Bills required to implement the National government’s budgetary proposals. National Treasury then implements the approved estimates through the Finance Act, evaluates and accounts, and finally reviews and reports on those set revenues and expenditures every three months.
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