The Controller of Budget has unveiled concerning figures regarding the government’s spending on development projects in the first half of the 2023/2024 Financial Year.
According to Dr. Margaret Nyakang’o, the government disbursed a mere Sh.70 billion for development out of the allocated Sh.783 billion budget for the year.
This starkly contrasts with the expected expenditure and highlights a significant shortfall in developmental efforts during this period.
Dr. Nyakang’o, addressing the Finance and Planning Committee, emphasized the discrepancy, stating, “The expenditure was illegal as at least 35% should be spent on development.”
Despite this shortfall, the government augmented its development funds by receiving Sh.127 billion from various development partners.
However, even with this additional funding, the total expenditure on development amounted to Sh.197 billion, only 15% of the budget.
A breakdown of the expenditures reveals that a substantial portion of the budget, Sh.561 billion, was allocated to recurrent expenses, including salaries and operational costs.
Dr. Nyakang’o highlighted the magnitude of recurrent spending, stating that it accounted for 41.2% of the revised net recurrent estimates.
Furthermore, significant sums were spent on travel, totaling Sh.11.38 billion, representing an increase from the previous financial year.
The Controller of Budget detailed the breakdown, indicating that Sh.7.67 billion was spent on domestic travel, Sh.3.71 billion on foreign travel, and Sh.2.9 billion on hospitality during the period under review.
Despite these expenditures, certain sectors received disproportionately low funding.
For instance, the Environment Protection, Water, and Natural Resources sector received the lowest allocation at 3.9%, whereas the General Economic and Commercial Affairs sectors received 8.1% of the budget.
Moreover, while some ministries and departments received substantial portions of their annual budgets, others were left wanting.
State House, the Interior Ministry, and several other entities received over 50% of their annual budgets.
However, 11 Ministries, Departments, and Agencies (MDAs) did not receive any funds allocated for development, indicating a severe lapse in distributing resources to critical sectors such as Shipping and Maritime Affairs, Culture and Heritage, and the Judiciary.
The report by the Controller of Budget underscores the urgent need for more effective allocation and utilization of funds to prioritize development projects and ensure equitable distribution across sectors.
