Breakdown of Uhuru’s Budget Cut Proposals

Breakdown of Uhuru's Budget Cut Proposals

After Rejecting the 2018 finance bill, President Uhuru Kenyatta proposed a host of cost-cutting measures aimed at meeting the budget deficit that will be occasioned by the reduction of VAT on fuel.

According to Nation, Parliament will be the most affected with a cut of more than Ksh18 billion.

Among other proposals in Uhuru’s Ksh52.6 billion budget cuts proposal, funding to counties will be reduced by Ksh9 billion and Ksh3.8 billion will be slashed from the Equalization Fund- a program aimed at accelerating development in marginalized areas.

Kenyan Parliament

Despite the government’s praise of the Rural Electrification Programme, the fund has been slashed by Ksh1.6 billion with a further cut of Ksh1 billion on the ambitious Last Mile Project.

In education, Uhuru wants Ksh5 billion removed from the Digital Literacy Programme, Ksh1 billion from money meant to hire additional technical training institutions instructors and Ksh200 million from the body’s examination team.

The subsidized LPG gas cylinders project budget was trimmed by Ksh2 billion. The project was supposed to bring down the cost of a 6-Kg gas cylinder from Ksh5,000 to Ksh2,000.

The fight against corruption received a boost with increases to the Judiciary, Ethics and Anti-corruption Commission and the Office of the Director of Public Prosecution.

“These budget cuts ask of us in government that we tighten our belts. It also ensures the sacrifices made by tax-compliant Kenyans are matched by discipline from all of us in the public service,” he emphasized.

In his speech, he termed the changes as a balance of short-term pain and long time gain.

National Assembly Minority Leader John Mbadi

House Minority Leader John Mbadi stated the opposition will on Tuesday morning meet to take a stand on the proposals.


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