Budget highlights for year 2021/22
Introduction
On Thursday 10th June 2021, the Cabinet Secretary in charge of the National Treasury, Ambassador Ukur Yatani, presented the Budget Statement themed; ‘Building Back Better: Strategy for Resilience and Sustainable Economic Recovery and Inclusive Growth for the financial year 2021/22 to the Parliament.
The budget is widely seen as a balancing act of driving the big four agenda, enhancing the ability to respond to the Covid-19 pandemic, while reducing debt vulnerability as well as implementing various reforms to strengthen the economy.
A summary of the budget highlights is as shown below;
The budget targets revenue collection including appropriation in aid and grants amounts to Kshs 2.1 trillion in the financial year 2021/22. The ordinary revenues are projected at Kshs 1.78 trillion. This indicates the current target for the Kenya Revenue Authority for the Financial Year 2021/22.
On the other hand, the total programmed spending as projected amounts to Kshs 3.03 trillion in the financial year 2021/22. Of this, recurrent expenditure amounts to Kshs. 2.0 trillion whereas development expenditures amount to Kshs. 669.6 billion.
The allocations on implementation of the Big 4 Agenda is Kshs. 142.1 billion. This is illustrated below;
Other sectors that were prioritized in this budget allocation included security with a proposed allocation amounting to Kshs 294.5 billion. This is to enhance security ranging from Defense, National Intelligence Service, Policing and Prisons services so that an enabling environment can be achieved for thriving of businesses.
The massive disruptions in the education sector since the outbreak of Covid-19 pandemic, the CS proposed to allocate Kshs 202.8 billion. This will ensure that programs under this sector are well implemented as well as the learners recover on the time lost for attending classes in schools and other learning institutions.
Due to the increase in the number of the vulnerable groups resulting from the Covid-19 pandemic, the CS proposed to allocate Kshs. 37.8 billion to cushion these groups. They include the elderly persons, orphans, vulnerable children, persons living with disabilities and the displaced persons.
The government is responding to the advancement in technology which has been rapid especially since the outbreak of the covid-19 pandemic. In order to leverage on technology advancement and catalyze the economy recovery, improve livelihoods and create jobs, the CS has proposed to allocate Kshs. 20.9 billion to this initiative in the ICT sector.
CPA Juma H. W. Simwelo
June 14, 2021It is well covered.