National Treasury Cabinet Secretary Ukur Yatani at parliament buildings for the unveiling of the Sh3.3 trillion Budget on April 7, 2022. PHOTO | JEFF ANGOTE | NMG
Kenya will spend Sh1.36 trillion on debt repayment and Sh960 billion on wages out of Sh2.03 trillion collections, underlining the heavy debt burden the new government has inherited from the Jubilee administration.
The Parliamentary Budget Office (PBO), which advises lawmakers on the economy and budget, has told the new government to cancel the programme-based budget and switch to zero-based budgeting.
If adopted, the current budget will be shelved and a new one crafted from scratch, in a spending plan that will force all vote heads to justify their expenses for each new period.
All ministries and agencies would have to justify their budgets before any money is committed to spending which can deliver on the twin goals of limiting funds to priority spending and auditing the budget to eliminate waste.
The government should, however, approach the PBO’s proposal with caution. Being the largest spender in the economy, it should make the switch without disrupting the fortunes of private businesses that supply goods and services to the State.