Ichung’wah Has Asked National Treasury To Do Extensive Budget Revisions
National Assembly Majority Leader Kimani Ichung’wah requested on Wednesday that the National Treasury tighten its annual budgetary estimates in the Supplementary Budget.
While speaking on the floor of the House, the United Democratic Alliance-aligned legislator said that reasonable estimates would restrict the revisions to just one.
“I want to re-emphasize the need for the National Treasury to ensure that this supplementary budget as we have emphasized before that over the years, this house has called on the National Treasury to limit Supplementary budgets to at least one supplementary budget in a financial year so that whatever you plan to the annual estimates, you only revise it once,” he stated.
“Otherwise, the business of having to do budgetary revisions twice or thrice in a year are not a very good budgetary practice.”
Ichung’wah further suggested that severe layers of modifications harmed government entities who are prone to fail to fulfill their objectives.
“It speaks volumes to the level of preparedness that we have when we are preparing our budgets,” he added.
“In a way, it creates uncertainty with the implementing agencies in government as to whether we will have adequate resources to implement all the programmes that have been budgeted for in a financial year since they do not know whether that money is subject to review.”
He also instructed the Treasury, which is led by Cabinet Secretary Njuguna Ndung’u, to ensure that the economy’s liquidity situation impacts their supplementary budget.
Ichung’wah’s words came after Budget & Appropriations Committee Chairman Ndindi Nyoro presented the committee’s report on Supplementary Budget II 2023/24.
In the supplementary, the committee approved an increase of Ksh51 billion for the current fiscal year.
The committee also agreed to reduce total capital expenditure for the fiscal year by Ksh75 billion.
Overall, the committee authorized a Ksh24 billion decrease in the overall budget for the current fiscal year.
“Financial prudence must lead the Treasury’s budgeting process. Ichung’wah requested that the Treasury create realistic income predictions and that KRA improve its revenue collection efforts.
“Otherwise, the recurrent use of supplementary budgets within a fiscal cycle breeds uncertainty among government agencies.”
Ichung’wah Has Asked National Treasury To Do Extensive Budget Revisions
