Ndindi Nyoro blasts government for reckless borrowing
Kiharu MP Ndindi Nyoro slams Treasury for missing revenue targets and reckless borrowing
Kiharu MP Ndindi Nyoro slams Treasury for missing revenue targets and reckless borrowing.
The National Assembly Budget Committee Chairperson, Ndindi Nyoro, on Wednesday, November 20, blasted the National Treasury over the failure to hit its revenue projections and what he termed as unclear budget targets.
Speaking during the Budget Appropriations hearing, Ndindi blasted the Treasury over its prioritisation of recurrent expenditure at the expense of development.
Nyoro also took issue with the continued revenue shortage that has exposed the country to more borrowing, despite local pressure from Kenyans for the government to stop borrowing.
”We keep making the same mistake all the time, for the last 10 years, our ordinary revenue has only been achieved at 67 percent. If you keep having a downfall between our targets and the actual revenue, then why do we have to target higher?” Ndindi questions.
As of July 2024, the public debt in Kenya accumulated to roughly Ksh10.6 trillion, according to data from the Treasury.
Nyoro’s comments came even as the Treasury in September revealed in the 2024 Draft Budget Review and Outlook Paper that it missed its revenue targets for the last financial year by Ksh172.1 billion.
This is after it set its eyes on collecting a total revenue of Ksh2.46 trillion and only managed to achieve a total of Ksh2.29 trillion.
”Ordinary revenue collection in FY 2023/24 amounted to Ksh2.29 trillion against a target of Ksh2.46 trillion. All ordinary revenue categories recorded below target performance during the period under review,’’ Treasury stated.
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Responding to the lawmaker, the Treasury, however, expressed optimism that the anomalies would be rectified in the next budget of 2025/2026.
According to Treasury Principal Secretary Chris Kiptoo, the government would align its targets with the demands of Nyoro, especially with the lowering of inflation and other key economic indicators that have gained the right trajectory.
”You will see that in July the Kenya Revenue Authority (KRA) missed its target by Ksh35 billion, in August the target was missed by Ksh25 billion, and in September the target was missed by Ksh10 billion,’’ Kiptoo stated.
”We are taking measures together with the Central Bank towards lowering our borrowing costs,’’ Kiptoo added.
This happens even as the Treasury PS revealed that the government would put more stringent measures in place to curb mismanagement of funds within government agencies.
The PS added that the government will not automatically allocate funds to state departments and agencies, as they will have to provide justifications for the expenditure.
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