The National Treasury is mulling borrowing Ksh 141 billion from the domestic market to plug the 4.2pc budget deficit that has arisen following the rejection of the Finance Bill 2024.
Treasury Principal Secretary Chris Kiptoo while appearing before the National Assembly’s Public Debt and Privatisation Committee said despite the implementation of austerity measures the budget deficit had risen from 3.3pc to 4.2 pc.
As a result counties will also lose at least Ksh 20 billion from the equitable share as national government entities also take a budget cut.
The rejection of the Finance Bill 2024 has sent the government back to the drawing board with various entities both at national and county level being forced to take budget cuts.
Treasury Principal Secretary Chris Kiptoo engaged the National Assembly Public Debt and Privatisation Committee on strategy to address a budget deficit that has risen from 3.3pc to 4.2pc.
Treasury has now rationalized budgets of various government agencies by at last Ksh 178 billion.
In the budget cuts, counties are set to lose Ksh 20 billion while parliamentary service commission will lose at least Ksh 2 billion.
The parliamentary service commission while meeting the national assembly budget and appropriations committee admitted the budget cuts will affect the operations of parliament.
Treasury is also optimistic the government will generate at least 30 Billion shillings through tax amnesty. Further the merging of 47 state corporations is expected to initially save Ksh 7 billions.
Treasury submitted the government will be borrowing domestically at least Ksh 141 billion even as it explores borrowing in china.
