‘Establish A Budget Office And Close These Loopholes’ – Uhuru’s Former Economic Adviser To Ruto
Former President Uhuru Kenyatta’s economic adviser, Mbui Wagacha, advised the Kenyan government to establish a professional budget and management body.
In an interview with the Associated Press for a story on President William Ruto’s explanation of the consequences of dropping the Finance Bill 2024, the economist hinted that the lack of a professional body caused problems in the bill’s creation.
He argued that, as things stand, the Ministry of Treasury is responsible for submitting budget estimates to the Finance Committee in Parliament in order for the Finance Bill to be enacted.
As a result, Wagacha blamed Parliament for prioritizing its own interests, thereby abandoning its mandate.
Instead, the economist suggested that the government emulate the Office of Management and Budget (OMB), which operates in the United States.
OMB was established to assist the President of the United States by overseeing the implementation of his or her vision throughout the Executive Branch.
Its mandate, therefore, is to assist the President in meeting policy, budget, management, and regulatory objectives.
To achieve its objectives, the OMB has five primary functions: budget development and execution, management, including agency performance oversight, procurement, financial management, and information technology.
They also stated that coordination and review of all significant Federal regulations from executive agencies, privacy and information policy, and review and assessment of information collection requests were required.
Other responsibilities include the clearance and coordination of legislative and other materials, such as agency testimony, legislative proposals, and communications with Congress.
Moody's has downgraded Kenya's local & foreign-currency long-term issuer ratings to Caa1 from B3. Outlook remains negative.
— Mwango Capital (@MwangoCapital) July 9, 2024
"we do not expect the government to be able to introduce significant revenue-raising measures in the foreseeable future"
More details:
🛑 Significant… pic.twitter.com/Lwmt2hHc8Y
Finally, other Presidential actions must be coordinated, as well as Presidential Executive Orders and memoranda cleared with agency heads prior to issuance.
Wagacha also noted that Kenya’s planned borrowing could be disastrous, and he advised the government to use diplomacy to attract investment and restructure debt.
This could allow the regime to write off certain debts.
After dropping the Finance Bill, President William Ruto hinted that his administration might need to borrow up to Ksh1 trillion to meet the budget.
The alternative was to restrict the budget in certain areas in order to reduce the Ksh3.9 trillion budget.
Moody’s, a global credit rating agency, downgraded Kenya’s ability to access external loans on Monday, citing the government’s inability to deal with its massive debt.
According to Moody’s, the government’s decision to withdraw the Finance Bill and instead rely on budget cuts to reduce the fiscal deficit may have implications for Kenya’s financing requirements.
As a result, the credit rating agency downgraded Kenya’s credit rating to “Caa1” from “B3” and predicted that the country’s debt affordability would remain low for a longer period of time.
‘Establish A Budget Office And Close These Loopholes’ – Uhuru’s Former Economic Adviser To Ruto
