Ndindi Nyoro says government will reduce borrowing by Sh186 billion
National
By
Sharon Wanga
| May 29, 2024
Amidst the ongoing debate on the Finance Bill, the government has promised to scale down its borrowing rate for the financial year 2024/2025.
Speaking at the National Assembly on Wednesday, May 29, Kiharu MP Ndindi Nyoro, the Budget and Appropriation Committee chairman said that the government is working towards cutting the debt deficit.
"We want to rationalise the amount of money we want to borrow. At the budget policy statement level, the country was looking forward to borrowing around Sh 700 billion. In this estimate we have brought down that estimate to Sh 514 billion," said Nyoro.
Nyoro said interest rates for loans taken will be clustered under the Consolidated Fund Services (CFS) which account for the payment of interest rates and pensions totaling Sh 1.3 trillion.
"Kenya will be spending Sh 1.08 trillion into payments of interest rates for our loans, what we call financial obligations. There are loans we were paying, which were taken earlier," he emphasised.
He further mentioned that changes were already made in the division of revenue bill.
Nyoro explained that the equitable share had been increased from Sh. 375 billion to a proposed amount of Sh. 400 billion pending approval.
Ndindi went on to note that the committee decided to amend the treasury's proposed budget of Sh 3.14 trillion by asking for more funding.
"After looking at the gaps we needed to bridge, we'll be deciding on adding some extra money to our expenditure. Some of the areas we saw need more resources. Some of the monies will be added to universities (HELB)," he added.
On the school feeding programme that has aroused debate lately, the chair said that there was ongoing consultation with the education stakeholders which resolved to channel a total of Sh 3 billion to the National Council for Nomadic Education in Kenya (NACONEK) in support of the first phase of school feeding programmes