Budget Controller alarmed by ministries’ failure to utilise funds

Controller of Budget Agnes Odhiambo. [PHOTO: FILE/STANDARD]

Kenya: Office of Controller of Budget has raised more concerns over the persistent underutilisation of development funds by Government Ministries, Departments and Agencies (MDAs).

Controller of Budget Agnes Odhiambo said the worrying trend is likely to stall implementation of key development projects and choke the projected economic growth.

The country’s Gross Domestic Product (GDP) expanded by 4.7 per cent in 2013 compared to 4.6 per cent in 2012 and the Government forecast a 5.8 per cent in 2014.

Mrs Odhiambo underscored the need for the MDAs to synchronise work plans, procurement plans and cash flow plans to ensure that development programmes are implemented on a timely basis.

“The Office is particularly concerned on the slow rate of utilisation of development funds.  With only three months remaining in the current financial year, the Office of the Controller of Budget recommends adoption of appropriate strategies to improve the implementation of development programmes,” she said.

“Increased absorption of development funds is essential in creating an enabling environment for the growth of the economy as well as providing services to the public.”

According to a Budget Implementation Review Report for the third quarter of the 2013/2014 financial year, absorption of development funds stood at 28.9 per cent against the annual development budget estimates.The overall absorption of funds (both development and recurrent) for the period under review stood at 51 per cent of the 2013/2014 annual budget estimates.

Development target

“While this growth shows progress from the 36 per cent recorded by the end of the second quarter, there is need for concerted effort to ensure that programmes are implemented on schedule in order to meet the development targets by MDAs,” said Odhiambo. Ironically during the period under review personnel emolument expenditure was Sh196.3 billion, accounting for the highest proportion of recurrent expenditure at 55.8 per cent.

Teachers Service Commission had the highest expenditure on personnel emoluments at Sh125.2 billion mainly salaries for teachers while the Registrar of Political Parties had the lowest expenditure on personnel emoluments at Sh41.8 million.

According to the report the Ministry of Foreign Affairs had the highest expenditure on foreign travel, standing at Sh435.2 million due to its core mandate of promoting international relations.