Friday, July 29, 2011

Kenya treasury to review spending plan



Written By:Catherine Achieng'a,    Posted: Thu, Jul 28, 2011
Ministries will have to downscale their spending
Treasury will now have to review its initial spending plan to factor in proposal adopted by parliament on Wednesday.
Ministries will have to downscale their spending following re-allocation of to be spent in the employment of 28,000 teachers, purchase of sunscreen for persons with albinism, boosting the country's strategic grain reserve, as well as improving services provision in healthcare.
The unanimous adoption of the Budget Committee report by parliament defines a new era in the budget making process in which parliament and by extension the public has had an opportunity to contribute in how public funds are to be spent.
All government ministries except that of internal security and medical services have no choice but to cut down on purchase of vehicles by half, to free resources that have been reallocated to other sectors.
Other ministries that have lost in the reviewed budget include treasury which will have to scale down its spending with four billion allocated to its budget reserves and financial services revised to zero.
Government officials including parliamentarians will also have to cut down on foreign travel and transportation costs freeing 206 million shillings.
The education ministry will also have to make do without 2.4billion shillings that has been transferred to the teacher's service commission to facilitate employment of 28,000 teachers, 18,060 of whom have been serving as intern teachers.
Other beneficiaries of the budget include persons living with albinism who will receive 150million to purchase sunscreen that will be distributed for free, former MP's who will now receive a pension of 90,000 shillings a month once the parliamentary service pensions act is amended.
One term MP's will also be entitled to the pension as soon as a bill to legalize the proposal is drafted and tabled in parliament bringing into sharp focus the financial burden likely to face the exchequer.
Healthcare will also receive a boost with 150million allocated to purchase of 3 cancer scanning machines with 234million also injected to employing medical personnel.  
To boost food security, 500million will go towards purchase of affordable certified seeds, and  1.1billion will also be used to boost the strategic grain reserve.  
To address the plight of seniors, orphans and vulnerable community and women 845million has been allocated for cash transfers programmes.

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