State House reveals government’s plan B if Finance Bill 2024 is rejected
3 min read
State House Spokesperson Hussein Mohamed has revealed the government's alternative option should Finance Bill 2024 fail to pass
State House Spokesperson Hussein Mohamed has revealed the government’s alternative option should Finance Bill 2024 fail to pass.
Hussein, through his official X account on Thursday, June 20, 2024, said the President William Ruto-led administration will turn to budget cuts if the Members of Parliament (MPs) vote against the Bill.
He stated that President Ruto while attending Garissa University’s 5th graduation on Thursday, June 20, 2024, had urged the MPs to pass the Bill to prevent the government from taking the tough alternative that it has at the moment.
Hussein shared a list of proposed budget cuts, which he says have been made by the Treasury, and that will be adopted if the Finance Bill 2024 does not pass.
“President William Ruto at Garissa University’s 5th graduation: ‘MPs should pass the finance bill to secure jobs for intern teachers, fund HELB and School feeding.’ For some perspective Treasury proposes budget cuts (below) if the bill doesn’t pass. We are in this together!” Hussein said.
Among the said proposals made by the Treasury, according to an undated statement shared by Hussein, is the reduction of Ksh3.7 billion from the budget allocated for medical interns.
“The following are the proposed reductions in the budget that would necessitate amendments to the Appropriations Bill if the Finance Bill 2024 is not approved,” the introductory part of the statement reads.
A reduction of Ksh451 million has been proposed on the budget for the operations under the Office of the President.
Operations under the State House will see a reduction of Ksh500 million on the amount allocated if the Finance Bill 2024 fails to go through.
Security operations under Internal Security will see a reduction of Ksh2 billion.
The Treasury has also proposed a reduction of Ksh7.75 billion from the budget allocated for Security Operations and Modernization under the Ministry of Defence.
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Foreign relations and diplomacy will lose Ksh1.85 billion in the budget cuts, and ongoing Technical and Vocational Education and Training (TVETs) and Technical Training Institutes (TTIs) projects will lose Ksh800 million.
Funding for the Differentiated Unit Cost model in universities will see a reduction of Ksh2.1 billion.
The Higher Education Loans Board (HELB), which Hussein emphasized in his statement, will lose a total of Ksh3.2 billion.
University infrastructure projects will see Ksh3 billion cut from the amount allocated in the 2024/2024 Financial Year budget.
Infrastructure for primary and secondary schools will see a reduction of Ksh1.6 billion, with the school feeding program also getting affected with a Ksh1.8 billion budget cut.
Kenya Revenue Authority (KRA) will lose Ksh4.7 billion, Kenya Airways Ksh1 billion, Civil Servants Insurance Scheme Ksh1 billion, Equalization Fund arrears Ksh1 billion, Pending Bills Ksh5 billion, and National Government Constituency Development Fund (NGCDF) Ksh15 billion.
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