Uhuru assents to Supplementary Appropriation Bill, 2021, budget pushes up borrowing by Ksh.125.7B

Uhuru assents to Supplementary Appropriation Bill, 2021, budget pushes up borrowing by Ksh.125.7B

President Uhuru Kenyatta assented to the Supplementary Appropriation Bill, 2021 on Tuesday evening at State House, Nairobi.

The Supplementary Appropriation Act, 2021 approves the utilization of Kshs 125.16 Billion from the Consolidated Fund in the provision of public services in the financial year ending on 30th June, 2021.

A statement from State House Spokesperson Kanze Dena – Mararo said the Supplementary Budget was necessitated by COVID-19 related expenditures, settlement of pending bills and rationalization of the budget among other urgent national needs.

The first 2020-21 supplementary budget estimates approved by the National Assembly will push up borrowing by a further Ksh.125.7 billion increasing Kenya’s debt stock.

On March 19, 2021, Members of Parliament voted to adopt the Budget and Appropriations Committee (BAC) report on the consideration of the supplementary estimates which pushes up gross spending by a similar margin.

The adopted report is expected to now form the basis of the first 2020/21 Supplementary Appropriation Bill set to be presented in the National Assembly.

The report proposes Ksh.80.7 billion in additional net spending and a further Ksh.46.7 billion increase in the Consolidated Fund Services (CFS) to cover rising local debt repayments.

The BAC Committee led by Kieni MP Kanini Kega lauded the extra appropriations for favoring development spending over recurrent even as it flagged fiscal risks from an increased 8.9 per cent of GDP, funding deficit from an original target of 7.5 per cent.

Additional spending on the recurrent side includes Ksh.12.4 billion to cover pending bills in the State’s maize subsidy program and Ksh.8 billion to the Teachers Service Commission (TSC) covering personal emoluments in the fourth phase of implementing the 2017-2021 CBA.

Other additions include Ksh.6.7 billion to the Ministry of Defense and Ksh.6.5 billion to the National Intelligence Service (NIS).

State Departments facing budget reductions meanwhile include Treasury (-Ksh.4.7 billion), Tourism (-Ksh.2.6 billion), Wildlife (-Ksh.2.5 billion), Public Service (-Ksh.2 billion) and University Education (-Ksh.2.2 billion).

On the development side, new adjustments include Ksh.26.5 billion in the State’s bail out to national carrier Kenya Airways, Ksh.2.5 billion for the operation of the Kenya Mortgage Refinancing Company (KMRC) and Ksh.2 billion in grants to KRA.

Additional report by Kepha Muiruri

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