Kenyans will have to shoulder the burden of the planned 3trn by the national government, in its 2021/2022 budget. According to a Budget Policy Statement released by Treasury CS Ukur Yatani, 2021/22 budget is Sh216 billion more than the Sh2.81 trillion expenditure estimates for the current 2019/20 financial year.
In the proposed 3tr budget, the Executive will slash the hugest share, at Sh1.92 trillion, followed by Parliament which is set to receive Sh37.8 billion and the Judiciary, which gets a disturbing Sh17.9 billion.
On the other hand, the counties are allocated Sh326.5 billion while the Consolidated Fund Services (CFS), responsible for paying debts, civil servants’ pension, and salaries for constitutional commissions will get Sh724.5 billion.
In his BPS, CS Yatani predicts the national government will fall short of its revenue of Sh937.6B which is 7.5% of the country’s GDP compared to the estimated overall deficit of Sh1tr in the 2019/2020 financial year, which was hugely affected by the pandemic.
This revenue deficit, the policy statement notes, will be financed by net external borrowing of Sh345.5 billion (2.8 percent of GDP), and net domestic borrowing of Sh592.2 billion (4.7 percent of GDP).