Treasury sets cash, hiring limits in spending shocker

Economy

The treasury puts cash, and spending staffing limits shocking


Cabinet Treasurer Nguguna Ndongo. file image | Diana Ngella | NMG

The Treasury Department has established monthly cash limits for government departments, departments and agencies (MDAs) and restricted new employee hiring, promotions and salary increase deals as part of broad measures to deal with the waste of public funds amid difficult budgetary conditions.

Treasury Minister Nguguna Ndongo said fixed monthly cash payments to ministries and ministerial departments would be linked to available funds with priority given to four categories of spending.

Professor Ndongo said in a bulletin addressed to the accounting officers of the MDAs he sees The daily business.

is reading: The Treasury plans to avoid 280 billion shillings in Eurobond payments

In the new disbursement plan, Class 1 expenditures will cover legal obligations, including debt outflows, salaries, cash transfers for seniors and other vulnerable groups, pensions, and the county’s fair share.

The second category includes key social, economic, accountability, governance and security programmes, including essential services and investments.

The third expenditure group includes all other expenditures financed by the Government of Kenya which are not in the first or second category.

The fourth expenditure category includes externally funded projects classified as budget revenue and for which funds are transferred to the treasury.

“To enable orderly disbursement of cash to the MDA, the national treasury will provide monthly cash limits per quarter on the basis of projected available cash for Categories 1, 2 and 3, thus, promptly meeting requests for Category 1, 2 and Category 3 expenditures when available,” Professor Ndongo said. cash in line with withdrawal requests.”

Treasury restrictions also target employee expenditures on recruitment, promotions to senior ranks, or collective bargaining agreements with trade unions that have cost implications.

“Accounting officials should note that recruitment of new staff, replacement, promotion or promotion of staff should only take place after departments, departments and departments have obtained written confirmation of the availability of funding from the National Treasury, and the necessary approvals from the relevant entities of the public service charged to carry out the recruitment,” C.S. said.

“All proposed collective bargaining negotiations with trade unions representing public servants with costs involved must be referred to the national treasury to confirm the availability of funds before seeking necessary advice from the Salary and Remuneration Commission.”

In another move aimed at streamlining spending, the Treasury Department has banned commitments to supply goods and services without prior approvals tied to available funds.

“All commitments for the supply of goods and services must be completed by May 31, 2024. No commitments will be entered into without sufficient provision. Accounting officials must ensure that no unauthorized, irregular or wasteful expenditure is incurred. Corrective measures and disciplinary action should be taken immediate action against any public servant who commits an act of financial delinquency,” said CS.

Payments will be processed through the Central Bank of Kenya (CBK) only for goods and services actually provided or received.

Accounting officials should note that payment instructions to the Central Bank of Kuwait should only be issued against approved net treasury and appropriations collected for assistance. “Payment should only be made for goods and services received or provided,” Professor Ndongo said.

Historic outstanding billing and online banking obligations for the 2022/23 period will be dealt with based on the recommendations of the Multi-Agency Outstanding Billing Committee.

This week, the Cabinet agreed to set up a special committee to scrutinize outstanding bills of exchange, which exceed 537.2 billion shillings, before starting payments.

During a cabinet meeting chaired by President William Ruto on Tuesday, it was agreed that the team would have a working schedule of up to a year to present its findings.

is reading: The Treasury Department is seeing company registrations decline for the third year

Treasury data shows that outstanding outstanding national government bonds amounted to 537.2 billion shekels by the end of March, representing a growth of 23.6 percent from 434.5 billion shekels in the same period last year.

The government is facing a difficult balancing act to fund its 2023/24 budget amid challenging economic times. President William Ruto’s first budget of Sh3.68 trillion is 8.6 per cent higher than FY 2022/23’s Sh3.39 trillion.

This leaves an expected deficit of Sh720.1 billion, which will include about Sh198.6 billion borrowed externally, while Sh521.5 billion will be obtained domestically.

Revenue for 2023/24 is expected to be Sh2.89 trillion. Of this amount, Sh2.57 trillion is ordinary revenue – revenue from income tax, value-added tax, fees and investment.

→ (email protected)

cashhiringlimitssetsshockerSpendingTreasury
Comments (0)
Add Comment