Kenya Budget Preparation Process for FY 2017/2018 Launched
By David Indeje / Published July 28, 2016 | 4:30 am
Deputy President William Ruto on Wednesday launched the budget preparation process for the next fiscal year when he inaugurated sector working groups.
Ruto called for increased transparency and public participation in the process.
“Public spending must be prudent and high value investments prioritized. The next budget should give prominence to value for money.”
“The early preparation for the next financial year budget will allow us to finalise and accommodate the 2017 General Election,” he added.
Read: Next General Election Greatest Challenge to Kenyan Economy
He cautioned the team that, “We must not lose focus on the implementation of Government programmes planned for this year.”
“Lower priority expenditure must give way to high priority service delivery of programmes.”
The World Bank says Kenya’s debt levels have increased by 5 percentage points on average attributed to rising infrastructure spending that should support potential growth over the medium term.
Treasury Cabinet Secretary Henry Rotich plans to set budget expenditure ceilings by September this year.
“The ceilings will be set based on our realistic projection of our revenue performance and our ability to borrow as guided by our Debt Sustainability Analysis,” Rotich said.
“As you have noticed, we have revised our budget calendar to enable the current Parliament approve the FY 2017/18 Budget Estimates, in view of the fourth coming 2017 General Elections scheduled for August. The objective is to ensure that the budget for the 2017/18 is appropriated in good time for smooth operation of the budget before and after the 2017 general election,” he added.
Treasury has already allocated the Independent Electoral and Boundaries Commission (IEBC), KSh 19.7 billion for them to adequately prepare and conduct the General Elections. The Parliamentary Service Commission and the Judiciary have been allocated Ksh 28.4 billion and Ksh 15.8 billion, respectively.
This fiscal year, Treasury has projected a GDP forecast for 2016 at 5.9 percent. For 2017 and 2018 forecast is 6.1 percent and 6.2 percent respectively.
reported that Kenya’s public spending is projected to fall to 27.7% of GDP in the year to June 2018 from 30.6% in the current fiscal year with a 20.3 percent of GDP.
More Articles From This Author