On Tuesday, the Budget and Appropriations Committee chairperson Kanini Kega approved the Treasury’s allocation to the three arms of the government.
The proposed budget is slightly higher than the current financial year, which its budget was Sh2.8 trillion.
This year’s budget has boosted the allocation to the Big Four Agenda, compared to the Sh128.3 billion set aside for the same in the current FY.
Yatani had also set aside Sh50.3 billion for activities related to the Universal Health Coverage, Sh19.2 billion to the fight against HIV, malaria and tuberculosis and Sh15.5 billion was allocated to the housing.
Earlier this year, Yatani had proposed a higher recurrent expenditure of Sh1.975 trillion (15.8 per cent of GDP) from Sh1.776 trillion.
The Treasury has not provided cash for the referendum to implement the constitutional changes proposed under the Building Bridges Initiative.
The Independent Electoral and Boundaries Commission budget increases by Sh9.1 billion above its normal provisions, but not for the vote.
Development spending is on the other hand expected to reduce to Sh611 billion from Sh678.5 billion in the current financial year.
To finance the high spending, Kenya Revenue Authority is expected to collect Sh100 billion more which puts its next financial year’s ordinary revenue target at Sh1.7 trillion.
This is despite the tax body struggling to hit its target in previous financial year’s, with the current one proving to be an uphill task due to the pandemic.
The deficit will be financed by debt where the government plans to borrow slightly above Sh1 trillion with Sh572.7 billion to be sourced locally while foreign borrowing is pegged at Sh427.5 billion.
This year, the Treasury has been on the receiving end over the ballooning borrowing from outside.
Recently, the government received Sh255 billion loan facility from the International Monetary Fund, a move that caused uproar from members of the public.
The loan triggered a storm in the country with Kenyans accusing the government of too much borrowing with little to show for the huge debt burden.