Treasury wants to know what you think about next Budget — this is what’s in it

Kenyans will have to take a share of the blame if they are not happy with the economic measures the Government implements in the next financial year.

In advertisements in newspapers, the Treasury has invited views from the public on the 2016-17 Budget, which is a particularly important spending plan for two major reasons.

First, it is the last Budget the Jubilee administration will fully implement before the country heads into another General Election. It offers a chance to fulfil election pledges made on the campaign trail three years ago.

Second, it is also when the second medium-term plan (2013-2017) lapses. After next year, the plan projects the country would register 10 per cent growth in GDP once various initiatives were implemented.

The Treasury published the Budget Policy Statement for the 2016-17 financial year nearly two weeks before the mandatory deadline of February 15. It details how the Government proposes to raise and spend Sh2.07 trillion to run the country for 12 months.

Additional measures

It is now up to individuals — as well as institutions such as the Commission on Revenue Allocation, (CRA), county governments, the Controller of Budget, Parliamentary Service Commission, (PSC) and Judicial Service Commission — to propose additional measures that would spur growth.

Kenyans have until March 31 to present ideas that would create wealth and jobs, reduce poverty and strengthen devolution. These proposals should be supported by a brief statement and rationale.

They should be forwarded in writing to Treasury Principal Secretary Kamau Thugge, or emailed to [email protected].

The Treasury is required to consider these proposals in preparing the national Budget.

Unfortunately, citizen participation in public finance, both at county and national government levels, has been found wanting.

A majority of taxpayers are often indifferent or unaware of their right to question public spending and priorities in fund disbursement.

According to the World Bank, a lack of citizen participation in the budget-making process is undermining the accountability of county administrators and fuelling wastage.

Section 197 of the Public Finance Management Act says public officials who incur wasteful expenditure attract a possible five-year prison sentence or Sh10 million fine, or both.

The Act further makes public officers at both county and government levels personally liable for losses incurred by the Government as a result of their fraudulent, corrupt or negligent acts, and makes it an obligation for principal secretaries and county chief officers to report suspected financial misappropriation.

Despite these provisions, several counties, including Nairobi, Homa Bay, Mombasa, Narok, Machakos, Murang’a, Nyamira, Baringo, Nandi and Kilifi, have been found to have spent money against the Controller of Budget’s approval in the 2014-15 financial year.

 

In addition, a total of 14 counties exceeded their annual allocations for domestic and foreign travel. These are; Baringo, Bomet, Embu, Homa Bay, Kericho, Kisii, Machakos, Murang’a, Nakuru, Siaya, Trans Nzoia, Vihiga, Wajir and West Pokot, with Murang’a and Vihiga spending twice and thrice more, respectively, than was earlier budgeted.

Citizen participation has been cited as a means of not only stemming such wasteful spending, but also ensuring that marginalised communities enjoy the benefits of devolution.

“Upward accountability, in which the central government supervises county governments, can be more difficult to implement because of county government autonomy and distance from the centre,” said the World Bank.

“Downward accountability mechanisms, which enable citizens to hold sub-national institutions accountable and make them responsive to their needs, therefore, become increasingly important in devolved settings.”

To this end, Business Beat has summarised the major highlights of the Treasury’s proposed plan for the next financial year, which starts on July 1, 2016. This provides a starting point for ideas on how Kenya’s scarce financial resources can be utilised.