Ministries, State agencies returned Sh377 billion development cash to Treasury after failing to spend it

A total of Sh377.8 billion budgeted for development projects last year was returned to Treasury after State agencies failed to spend the money.

According to the latest report by the Controller of Budget analysing Government spending last year, out of the Sh696.5 billion that had been allocated for development projects, the State only managed to spend Sh318.7 billion, leaving the rest of the money idle.

This means that the funds for development were available in the budget, but the Government agencies and departments failed to spend half of it (45.8 per cent) and was returned to the Treasury.

This picture emerges even as Kenyans across the country are craving for new development projects to uplift their standards of living.

“There is need for ministries and departments within the national government to enhance efforts to achieve higher rates of development,” recommended the Controller of Budget Agnes Odhiambo in her report.

The report indicated that the absorption of development funds declined last year compared to the previous year when it stood at 53 per cent.

This means that the government was able to spend less development funds last year than it did the previous year.

The report, reviewed national government spending between July 2014 and June 2015.

However, in terms of recurrent expenditure, which includes salaries and allowances, the national government spent almost all the money that had been allocated in the budget (89.7 per cent). This means that development projects took a backseat compared to recurrent expenditure.

Among the reasons that have been cited for the sluggish performance in spending for development include frequent delays in releasing the funds by Treasury.

“Delay in releasing funds may negatively affect businesses and may also affect implementation of planned activities in the following financial year,” Ms Odhiambo recommended in the report.