The National Treasury incurred Sh54.68 billion in unbudgeted public expenditure as President Uhuru Kenyatta’s term came to an end.
On a day when MPs accused the National Treasury of overstepping its mandate in the budget-making process, this raised questions about the fiscal discipline of a country grappling with liquidity issues and a massive public debt.
The expenditure exacerbated the problem of unpaid bills, making the budget deficit a moving target.
Of the amount incurred, Sh23.1 billion has already been disbursed to the various government ministries and state departments.
Another Sh16.6 billion went to fuel price subsidy, Sh11.4 billion for road construction projects, Sh8.2 billion for support to CBC, and Sh6.1 billion to support Telkom Kenya.
Uhuru’s administration also expended Sh4.5 billion for the unga subsidy, Sh3.5 billion for the Defence’s research hospital, and Sh3.8 billion to the office of the president.
MPs are required to approve the supplementary estimates in line with Article 223 of the Constitution which provides for such expenditure.
The law allows Treasury to spend, within 10 per cent range of a respective MDAs budget item, and seek approval later.
However, MPs and budget experts say they are concerned about the extra spending which they argue distorts the fiscal framework spelled in the Budget Policy Statement.
Just four months ago, the National Treasury asked the National Assembly to approve an additional Sh64 billion, of which a huge part was used to stabilise fuel prices.
This saw the budget for the financial year 2021-22 increase by Sh204 billion overall.
The request was made barely two months after MPs approved another supplementary budget.
