Health, national security, Public administration and international relations sectors are set to receive the huge budget increases in the next Financial Year 2024/25.
According to Institute of Public Finance (IPF), the increase in allocation will be necessitated by States’ needs preferences and the budget increase which is expected to grow by four per cent to KSh4.1 trillion.
IPF estimates the sectors will receive a budgetary boost of 6, 23 and 17 per cent to get KSh147.6 billion, KSh244.4 billion and KSh351.7 billion, respectively.
This is from KSh199.3 billion, KSh299 billion and Sh138.8 billion, respectively that the sectors received in the current Financial Year.
Other sectors projected to receive increased budgetary allocation include: energy infrastructure & ICT (2 per cent to Sh505.7 billion), Governance justice and law (4 per cent to Sh250.9 billion), and environment protection, water and natural resources (2 per cent to Sh127.9 billion).
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However, some sectors including education, agriculture, general economic & commercial affairs, and culture and recreation sectors might get a slashed budget due to fiscal consolidation policy by the Government.
James Muraguri, the chief executive of the firm said that slashing could be contributed by limited borrowing space to finance the budget.
However, education is estimated to get the lion share of KSh666.5 billion, in terms of the sectoral share allocation.
Muraguri added that the continued misses of revenue target misses by the taxman would largely affect the allocations as it has been in the past years.
He said, “If the economy undergoes a slowdown, there’s a concern that revenue generation might not meet expectations, potentially impacting budget implementation.”
By our reporter
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