Parliament approves Sh 39 billion supplementary budget before end of financial year
Written by David Indeje
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Parliament on Thursday approved finance ministry’s mini budget of Sh 39 billion in its 2011/2012 supplementary budget before the end of this financial year.
According to the parliamentary order paper that was read out by the Speaker of the National Assembly Kenneth Marende, “That a sum not exceeding Sh 32.2 billion shillings be granted from the Consolidated Fund to meet expenditure during the year ending June 30, in respect of supplementary estimates of 2011/2012financial year recurrent having regard to the proposed reduction of 10.4billion therein in appearing to sum not exceed Sh 7.4billion be granted from the consolidated fund to meet expenditure ending 30, June 2012 in respect of supplementary estimates of 2011/2012 financial year having proposed reduction of Sh 25 billion therein appearing,” the paper said.
The then finance minister Uhuru Kenyatta during the presentation of his budget estimates he had said the government intended to spend Sh1.15 trillion up from Sh988.8 billion 2010/2012, in this 2011/2012 budget estimates.
He said more emphasis was on ensuring continued growth in the face of emerging domestic and global challenges, education, health, investment in infrastructure and the implementation of the new constitution while maintaining a macroeconomic stability.
With this he projected a growth of 5.3 percent for the region.
“We expect real GDP growth of 5.3pc percent in 2011, rising steadily to 6.1pc in 2012. This translates to 5.7 percent for FY 2011/12 or 0.4 percent lower than the projected growth of 6.1 percent at the time we prepared the 2011 Budget Policy Statement,” he had said.
Thursday, the finance minister Njeru Githae had said that after rationalization exercise they had agreed on five key areas that were considered to be of priority and required funding.
Defense Spending “Support for national security including financing for Kenya’s mission to stabilize Somalia” which was allocated Sh 14.3 billion of which he noted that it had improved security, reduced piracy and the country maintained its territorial integrity.
Sh 3 billion for the purchase of fertilizer, Sh 6.2 billion for the recruitment and hiring of teachers, Sh 2 billion for the completion of the Thika super highway, Sh 541 million for medical scheme for civil servants and Sh 300 million for the issuance of identification cards.
The finance minister further refuted claims from the media that the constituency Development Fund will be abolished saying the devolved funds are there to stay.
“The CDF is there to remain and it is not going anywhere. We may change the name, but it’s there to remain the same case with LATF funds and other devolved funds. The same amount will be provided for in the next budget,” said the minister.