In a highly anticipated event this afternoon, National Treasury Cabinet Secretary Prof. Njuguna Ndung’u is set to present a comprehensive Ksh 4 trillion national budget. This marks a significant milestone in the country’s economic planning, outlining the government’s priorities and financial strategies for the upcoming fiscal year.
Key Allocations
The draft budget indicates a meticulous distribution of funds across various sectors:
- National Government: Allocated Ksh 2.2 trillion to facilitate the administration and operations of the national government.
- Consolidated Fund Services: Earmarked Ksh 1.2 trillion, primarily designated for debt servicing.
- County Governments: A total of Ksh 400 billion to be shared among the counties, ensuring decentralized development and service delivery.
Executive Arm Breakdown
The Executive Arm has been allocated Ksh 2.24 trillion, broken down as follows:
- Recurrent Allocation: Ksh 1.5 trillion to cover ongoing operational expenses.
- Development Expenditure: Ksh 724.4 billion aimed at funding development projects and infrastructural improvements.
Judiciary and Parliament
The budget provides:
- Judiciary: Ksh 23.6 billion to support judicial functions and enhancements.
- Parliament: Ksh 44 billion for legislative activities and parliamentary operations.
Revenue Projections and Borrowing
The draft budget projects a revenue collection target of Ksh 3.3 trillion. To bridge the gap between projected revenue and the proposed budget, the government plans to engage in borrowing, comprising:
- Net Domestic Borrowing: Ksh 300 billion
- Net External Borrowing: Ksh 306 billion
Sectoral Allocations
Several key sectors are set to receive substantial funding:
- Education: Receiving the largest share with Ksh 700 billion, highlighting the government’s commitment to advancing the education sector.
- National Security: Allocated Ksh 373.5 billion to enhance security measures and infrastructure.
- Roads: Earmarked Ksh 178 billion to improve and expand the national road network.
- Health: Set to receive Ksh 128.7 billion, focusing on improving healthcare services and facilities.
Notable Inclusions
The proposed 2024/2025 budget introduces several new measures:
- Motor Vehicle Tax: A tax of 2.5% of the vehicle’s value, with a minimum of Ksh 5,000 and a cap at Ksh 100,000.
- Standardized VAT: Efforts to streamline and standardize the Value Added Tax system.
- Eco Levy: Imposed on electronics, diapers, lithium batteries, and tyres to promote environmental sustainability.
- Affordable Housing Program: The budget proposes lifting the restriction on the sale of affordable housing units without the consent of the Affordable Housing Board, facilitating easier transactions within the housing market.
This budget presentation by CS Njuguna Ndung’u is a crucial step in outlining the government’s financial strategies and priorities, reflecting a balanced approach to development, debt management, and revenue generation. The proposed allocations and new measures aim to stimulate economic growth, enhance public services, and promote sustainable development across the nation.
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