National Assembly has embarked on the process to cut the budget of the three arms of government by Sh156.39 billion as was proposed recently by President William Ruto.

It has invited members of the public to submit memoranda on Supplementary Estimates 1 for the financial year 2024/2025 after the National Treasury Principal Secretary submitted the budget estimates to the Assembly on July 12.

The submissions by the PS comprised Programme Based Budget, recurrent estimate, development estimates, and memo on supplementary budget estimates 1. Consequently, the Speaker of the National Assembly Moses Wetangula referred the Budget and Appropriation Committee chair led by Ndindi Nyoro.

Supplementary Estimates 1 for the Financial Year 2024/2025 seeks to implement necessary austerity measures and actualise expenditure cuts across the three arms of Government, Constitutional Commissions and Independent Offices.

The estimates propose to reduce the budget for the three arms of government by Sh156.39 billion, out of which Sh34.04 billion constitutes approved recurrent expenditure, and Sh122.35 billion constitutes approved development expenditure.

“This is a 6.6 decrease in expenditures approved in the estimates for Financial year 2024/25 and seeks to rationalize the approved estimates for this year,” the notice states. Further, the estimates seek to rationalise the expenditure for the financial year 2024/2025, to align with the revised fiscal framework and cater for the financial year 2023/2024 carryovers.

The 2024/25 financial year budget was to be funded through additional revenue measures amounting to Sh344 billion contained in the 2024 Finance Bill, which was no assented to, creating a financial gap of a similar amount.

Ruto announced that he would not sign the contentious Finance Bill 2024, which had sparked mass protests across the country resulting in several reported deaths. The decision came just a day after the Bill was passed by Parliament, despite nationwide demonstrations against it.

Suggested amendments

Nyoro’s team is expected to pick submissions from Kenyans in an exercise scheduled to run up to July 22 and report back to the House with suggested amendments and or proposals made by the public on this. The public was notified that the supplementary estimates seek to implement necessary austerity measures and actualise expenditure cuts in the government.

The proposed austerity measures come against a backdrop of a projected reduction in estimated revenue from 18.5 per cent of gross domestic product (GDP) to 17.5 per cent of GDP and a projected reduction in expenditure from 22.1 per cent of GDP. It also seeks to address a projected increase in the overall fiscal deficit, inclusive of grants, from 3.3 per cent of GDP to 3.6 per cent of GDP.

President William Ruto, while responding to pressure from Kenyan protests, had agreed to reduce the budget of his office and other executive offices.

The move was aimed at realising austerity measures to ensure that there is a fiscal discipline with resources only channelled to vital projects or where needed most. It aims at aligning the National Assembly estimates approvals with the Revised Framework and to cater for the 2023/24 carryovers or balance brought forward. The notice is in compliance with Article 118(1), (b), of the Constitution, which requires parliament to facilitate public participation to this effect.

This includes the involvement of legislative and other business of Parliament and its House Committees thereto vital in overseeing the collection of public suggestions.