Ksh 138.9 Billion Supplementary Budget Cleared for Debate – Kenyan Business Feed

The supplementary budget is set to be tabled before the assembly for adoption following the go ahead from the Budget and Appropriations Committee.

In the new supplementary estimates, the committee is recommending that the august house approve an increase of Ksh. 138.9 Billion from which Ksh 138.1 billion will be will be channeled to the executive.

Judiciary is expected to get Ksh 1.2 billion and parliament will get Ksh537 million.

In a departure from the recent past, the first Supplementary Estimates for financial year 2021/2022 have been brought to the House six months into the financial year which allows the budget adequate time to gain traction for policies to be implemented by the various Ministries, Departments and government Agencies (MDAs.)

According to the Budget and appropriations committee the implementation of the budget has not been uniform as a review of exchequer released indicates that as at December last year, 50 MDAs had received less than 50 percent of their approved budgets with 9 of them having received less than 30percent.

“Indeed, even county transfers have been below target with the devolved units having receiving only 39 percent of the total Equitable Share. The Committee is concerned that this skewed release of resources could jeopardize budget implementation for the affected MDAs,” the Kanini Kega led Committee said in the report.

In the supplimaentary budget ordinary revenue collection is projected to increase by Ksh 25 billion (1.4 percent) from Ksh 1.776 billion to about Ksh 1,801 billion.

This is following a recent move by KRA to effect an increase in Excise duty by 7.7 percent which will add about Ksh 19 b and other tax revenues by 17.1 percent respectively.

Income tax collection has been revised downwards by Ksh 16 b from Ksh 834 b.

This is on account of underperformance of corporate tax and withholding tax that accounted for a shortfall of about Ksh10.9 billion in the fisrt half of 2021/22 FY.

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