The Kenyan state has exceeded its approved budget by Sh120.8 billion. This is majorly due to Covid-19 related expenditure.
According to the Treasury Cabinet Secretary Ukur Yatani, the comprehensive ministerial cumulative expenditure in the fiscal year 2020/21 had escalated by four percent from the original approved budget; from this, the recurrent and development spending climbed by 2.1 and 7.7 percent sequentially.
“The implementation of the financial year 2020/21 budget continues to face various challenges. These include the effects of the Covid-19 pandemic which slowed down economic performance, underperformance of projected revenues in the first half of the financial year” he stated.
“Further, an increased demand for additional priority expenditures poses a challenge to the implementation of ongoing projects”
According to the Supplementary budget estimates tabled in Parliament on 9th February 2021, Treasury spent Sh45.6 billion to repay debt, pension, and pay salaries for constitutional officeholders.
“The overall change in the National Government Ministerial Budget (excluding Consolidated Fund Services and County allocations) from the original approved budget is an increase of Sh75.1 billion which reflect a 4 percent change,” Mr. Yatani noted.
The Treasury stated some of the changes made had surpassed the 10 percent threshold depicted by the law.
“We are in this regard requesting for special approval of the expenditure adjustments which are beyond the 10 percent threshold in accordance with regulation 40(9) of the Public Finance Management Regulations, 2015,” Mr. Yatani stated.
The revenue performance was beneath the target by Sh107.6 billion for the period July 2020 to December 2020, according to Treasury. Kenya Revenue Authority collected Sh800.1 billion yet it targeted to accumulate Sh907.7 billion.