The National government exceeded its target for the recurrent budget of Ksh1.29 trillion in the financial year 2024/25 by Ksh193 billion after spending Ksh1.5 trillion by December last year.
- The figure presented in a supplementary budget before the legislature excludes a Ksh30.4 billion recurrent budget for Parliament and the Judiciary.
- Total revenue collection including ministerial appropriation in aid by the end of December 2024 was Ksh 1.368 trillion against a target of Ksh 1.431 trillion recording a shortfall Ksh62.8 billion.
- This has led to a downward revision of ordinary revenue projections to KSh 2.6 trillion, and a total revenue projection of KSh 3.1 trillion.
“The above target expenditure in the recurrent category was mainly due to higher than targeted expenditures on pension payments, and operations and maintenance,” according to a statement of the Financial Year 2024/25 supplementary estimates number 2.
The revenue performance as at December 2024 indicates that meeting the overall revenue target for the financial year 2024/25 remains a challenge.
“Ordinary revenue is now projected at Ksh2.6 trillion and AIA at Ksh484.3 billion giving a total revenue projection of Ksh3.1 trillion. In this regard we have prepared the FY 2024/25 supplementary estimates number 2 to accomodate the changes and allign the budget with emerging developments,” reads the statement of the Financial Year 2024/25 supplementary estimates.
Key assumptions in the supplementary estimates includes net foreign financing is projected at 1.6% of GDP, net domestic financing at 3.3 per cent of GDP, total revenue projected to increase from the approved budget from 16.9 to 17.6% of GDP, Ttotal expenditure and net lending revised from the approved projection at 21.5 to 22.8% of GDP while grants are projected at 0.3% of GDP.
