The government has postponed plans to convert the employment terms of 46,000 junior high school (JSS) trainees to permanent, pensionable terms, as the Treasury rationalized the budget after a parliamentary committee dropped some controversial clauses in the finance bill.
Part of the standby plan If the National Assembly does not ratify the measures to increase treasury revenues for the financial year starting in July, the National Government Departments Development Fund (NG-CDF) will also lose Sh15 billion, a major blow to lawmakers who are relying on the standby plan. Kitty to showcase her performance.
Cabinet Secretary to the National Treasury, Njuguna Ndongo, said the rationalization is aimed at addressing revenue shortfalls that may result from changes in the Finance Bill 2024 proposed by the Parliamentary Committee on Finance and National Planning.
If lawmakers adopt the changes proposed by the committee, led by MP Mulu Kimani Kuria, Professor Ndongo expects a deficit of Sh200 billion, which the Treasury will have to address through spending cuts.
The Treasury has proposed cutting Sh18.9 billion from the Teachers Service Commission (TSC), which will be used to recruit JSS teachers.
Professor Ndongo was responding to a letter from the Clerk of the National Assembly, Samuel Njoroge, requesting advice on various options that would enable the National Assembly to achieve a balance between expected revenues and total expenditures in light of the changes proposed by the Finance and Budget Committee. National planning.
“We note that section 39(4) of the PFMA, 2012 Cap. 412A requires that any increase in spending in a proposed appropriation be balanced by a reduction in spending in another proposed appropriation.
“We also note that after the ongoing debate on the 2024 Finance Bill, should the National Treasury approve the 2024 Finance Bill, the National Assembly can proceed with the consideration of the Appropriation Bill as published,” Buf Ndung’u said.
The allocation of last-mile electricity connectivity to constituencies was deferred, including a measure that was allocated Sh14.5 billion, while last-mile connectivity lost Sh4.57 billion, bringing the total State Department of Energy budget cut to Sh21.77. one billion.
Completion of ongoing road projects will have to wait longer if lawmakers approve changes proposed by the Kimani Kuria-led committee with the Treasury cutting Sh15.1 billion.
Payment of outstanding bills was also reduced by Sh5 billion, Kenya Revenue Authority (Sh4.7 billion), while Kenya Airways, Civil Employees Insurance Scheme and Equality Fund arrears lost Sh1 billion each.
Various water projects will lose Sh11.6 billion, irrigation projects (Sh3.7 billion), and Galana Kulolo (Sh1 billion).
The county's share of shareable revenues will lose Sh5 billion, fertilizer subsidy (Sh5 billion) and sugar reforms for farmers (Sh1.7 billion).
The ICT Authority will lose Sh6.7 billion while the State Department of Medical Services will lose Sh4.7 billion.
These reductions come through the changes made to the draft finance law, where the tax on cars was dropped by 2.5%, while the production tax on mobile phone transfer fees was maintained at 15% instead of 20%, while the environmental tax was limited to imported final products. .