Treasury acting CS Ukur Yattani has proposed an increase in budget expenditure by 3% from KSh 3.04 Trillion to KSh 3.13 Trillion. The KSh 86 billion increase contradicts expenditure cuts which treasury earlier spearheaded.
Yattani suggested the 3% increase in the supplementary budget plan, which is yet to receive the parliament’s approval.
At the same time, Treasury raised its budget deficit forecast for the third time, expecting a 6.3% deficit. This came after revenue between June and September fell KSh 85.5 billion short from the KSh 495 billion target.
The supplementary budget will go to some of the major projects such as energy, water, transport and healthcare.
Ministry of energy grew its budget from KSh 64.6 billion to KSh 72.4 billion. Moreover, the state added another KSh3 billion to fund alternative energy programs.
Treasury also tripled the allocations for industrial development investments to KSh 9.1 billion from KSh3.96 billion. Yattani set aside KSh 2.82 billion for Universal Healthcare as well as another KSh 19.2 billion for health policy and standards.
Other significant allocations include additional spendings on KSh 16.7 billion for the Nairobi SGR and KSh 3 billion for Dongo Kundu Special Economic Zone. The CS allocated an additional KSh 7.3 billion for Murang’a Northern Collector and James Gichuru Expressway.
