Treasury Proposes 57 Budget Cuts Amid Controversy Over Finance Bill

20, Jun 2024 / 2 min read/ By Livenow Africa

The National Treasury has proposed 57 amendments to the 2024/2025 budget following widespread protests against the contentious Finance Bill 2024.

In a report presented to the National Assembly on Thursday, Treasury Cabinet Secretary Njuguna Ndung'u warned of significant budget cuts if Members of Parliament reject the Finance Bill. Should the bill fail, the Appropriations Bill will be amended, leading to these cuts.

Key proposed reductions include a Ksh900 million cut to the State House and the President's allocation. The Interior and Defence Ministries face a combined Ksh9.7 billion reduction, with internal security losing Ksh2 billion and defence modernisation Ksh7.7 billion.

The education sector is also targeted for cuts, with tertiary institutions losing Ksh800 million and the Higher Education Loans Board Ksh3.2 billion. University infrastructure projects face a Ksh3.0 billion reduction, and school infrastructure and feeding programmes a Ksh6.4 billion decrease.

Roads and market construction projects will see a Ksh6.4 billion cut, while water and irrigation projects face a Ksh16 billion reduction. Information Communication and Technology (ICT) and sports programmes are proposed to lose Ksh30 billion.

Healthcare cuts include Ksh3.7 billion less for medical interns and Ksh1 billion less for the Civil Servants Insurance Scheme. The National Government Constituency Development Fund (NG-CDF) will be reduced by Ksh15 billion.

Agriculture is also affected, with Ksh1 billion less for cattle restocking, a Ksh5 billion cut in fertilizer subsidies, and a Ksh1.7 billion reduction for farmer arrears payments. The Coffee Cherry Fund will lose Ksh1 billion, and County Aggregation Industrial Parks Ksh1.6 billion.

Anti-graft agencies, including the Anti-Corruption Commission and the Office of the Director of Public Prosecutions, are set to lose Ksh395 million in budget allocations.

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