The Controller of Budget Margaret Nyakango has raised an alarm over government’s expenditure by the first three months of the 2023/2024 budget in a new report.
In the report, Nyakango has indicated that the government has been splashing money on foreign and domestic travels, increasing the expenditure by a third from July to September.
Also, the 189 paged report revealed that pending bills at the same time, have continued to increase, now standing at Ksh794 billion.
Out of the total Ksh784 billion budget, the report noted that Ksh700 billion was used to pay salaries and allowances to civil servants while only Ksh83 billion was used for development.
Nyakango in the report, has recommended that the government reduces expenditure on travels and channel the funds on reducing the cost of living.
“Ksh4.3 billion was spent on domestic and foreign travel, while Ksh10.04 billion was spent on hospitality controller of budget recommends that the national government reduces expenditure on non-core items, including travelling expenses.
“The savings can be then channeled towards addressing the cost of living for Kenyans and other priority programs,” the report reads in part.
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Comparison With Expenditure in Previous Year
The amount of pending bills recorded compared to the same time last year is an increase by Ksh191 billion for the national government and an increase of Ksh2.2 billion by the county government.
Also, contractors involved in government projects are owed Ksh289 billion.
“As of September 30, 2023, the public debt stock stood at Ksh10.59 trillion due to external lenders representing 53 percent and Ksh4.92 trillion due to domestic lenders representing 46.5 percent,” added the report.
Also Read: Controller of Budget Margaret Nyakango Arrested
Report Reveals State Corporations Not Remitting Taxes
On the other hand, the report detailed that state corporations had not been remitting taxes including the Pay as You Earn (PAYE) for their employees. The amount accrued stands at Ksh25 billion.
At the same time, the state corporations have not been remitting the National Social Security Funds (NSSF) of up to Ksh407 million, while the National Health Insurance Fund (NHIF) debt stands at Ksh80.9 million.
Pension arrears owed by state corporations stand at Ksh47 billion according to the report.
This means many government employees may not be able to access medical services or receive their retirement funds.
Government corporations have also not remitted Ksh2.7 billion for employee Sacco deductions, bringing the total unremitted amount to Ksh1990 billion.
