Parliament has increased its budget by Sh2 billion after MPs reorganised the Budget Policy Statement (BPS) to raise its spending limit in the financial year starting July 1.
The National Treasury had set Parliament’s budget for the financial year 2024/25 in the BPS at Sh41.62 billion. However, the Budget and Appropriations Committee (BAC) chaired by Kiharu MP Ndindi Nyoro increased the ceiling to Sh43.62 billion.
In a report on the consideration of the 2024/25 BPS, the committee also increased the budget ceiling for the Executive by Sh50 billion. Treasury had set the allocation for the Executive at Sh2.438 trillion but the BAC raised the figure to Sh2.488 trillion.
The budget ceiling for the Judiciary has been retained at Sh23.69 billion as set in the BPS that was tabled in Parliament on February 15. The Judiciary was allocated Sh22.78 billion in the current financial year budget. This means the budget will increase by Sh910 million in the next financial year.
The Parliamentary Service Commission (PSC) told BAC that the ceiling proposed in the 2024 BPS was a marginal increase on the Sh40.77 billion allocated in the current financial year.
“The marginal increase is not sufficient to cater for the annual wage drift and the employer contribution to the Housing Levy,” the PSC said. “The proposed ceilings are against a total resource requirement of Sh65.81 billion for the financial year 2024/25.”
The brief to the BAC indicates that the resource requirement is informed by the need to facilitate MPs in “achieving their constitutional mandate as well as promoting parliamentary democracy”. PSC warned that if the situation is not remedied, the Legislature will be unable to implement its constitutional mandate.
“Concerned by the constant underfunding of the Legislature and noting the need to ensure predictability and adequacy of resources for the Legislature, the commission recommended that going forward, the annual allocation to Parliament be pegged at an amount of not less than 2.5 per cent of all national government’s share of revenue,” Mr Nyoro said in the BAC report.
“A predictable allocation of funds to Parliament ensures that legislative, oversight and scrutiny of programmes are adequately funded as part of the good governance best practices for democratic societies.”
BAC allocated Sh7.85 billion to the Equalisation Fund and a further Sh3.547 billion to cater for arrears to the fund that is meant to bring services in marginalised areas closer to those enjoyed in other areas.
The committee recommended that the allocation for the County Additional Allocations be approved at Sh48.196 billion, forming the basis for the County Government Additional Allocation Bill, 2024.
“That consistent with the approved borrowing strategy in the Medium-Term Debt Management Strategy, the projected fiscal deficit be set at Sh703.87 billion (3.9 per cent of GDP) being the difference between total revenues and total expenditure and net lending,” BAC proposed.
Once approved by Parliament, these recommendations shall form the basis for the 2024/25 financial year budget estimates.
Mr Nyoro will on Wednesday initiate debate on the report on the BPS, with MPs expected to adopt the same.
