Winners and losers: Dissecting the 2022/23 supplementary budget
The National Treasury has published the debut Kenya Kwanza supplementary budget for Financial Year 2022/23 with a proposed increase in the spending plan from KES 3.36 trillion to KES 3.72 trillion.
In the budget, there is a proposed slash in domestic borrowing from KES 581.7 billion to KES 415.5 billion and an increase in external borrowing from KES 280.7 billion to KES 378.9 billion, resulting in a net decrease in borrowing by KES 68.0 billion.
One of the major highlights of the budget is the allocation for the Hustler Fund, with the State Department for Cooperatives being earmarked for an additional KES 19.7 billion, with the full budget reaching KES 22.0 billion. The IMF’s fourth review of the program indicated that the Hustler Fund should be allocated around KES 12.0 billion in the supplementary budget, which is about 60.9% of the department’s proposed increase.
The budget also includes an increase of KES 41.7 billion in the Ministry of Petroleum’s budget, attributed to “oil market price stabilisation”, essentially the fuel subsidy. As of February 3, 2023, oil marketing companies were owed KES 53.2 billion in subsidy arrears.
The State Department for ASALS budget is set for a 60.0% increase to KES 16.7 billion, earmarked for drought resilience plans. However, allocation for water, sanitation and irrigation is set for a KES 24.0 billion slash to KES 59.7 billion.
On the other hand, the budget for the education sector, including vocational training, university education, post-training skills development, and implementation of curriculum reforms, is set for a consolidated slash of KES 4.4 billion, while early childhood and basic education is set for a KES 17.6 billion budget increase.
The National Assembly budget has been retained at KES 33.3 billion, with the Judiciary budget earmarked for a KES 2.8 billion increase to KES 21.1 billion. The Judiciary Service Commission is set for a KES 300 million increase in the FY2022/23 budget.
The Ministry of Health’s budget is proposed to be slashed by KES 9.0 billion to KES 113.5 billion, with the largest slash being in preventive, promotive, and reproductive health programs, with a proposed cut of KES 6.1 billion. Health research is set for a KES 2.2 billion budget cut.
The State Department for Infrastructure is set for a staggering KES 47.3 billion budget slash, with the Treasury citing “expenditure rationalisation”. The budget for the construction of roads and bridges is slashed by KES 25.5 billion, while the budget for rehabilitation of roads is slashed by KES 21.5 billion.
The budget for the Commission on Revenue Allocation is set to be slashed by KES 118.5 million, with the Salaries and Remuneration Commission budget set for a KES 107.6 million slash. The budget for the Independent Electoral and Boundaries Commission (IEBC) is set for a KES 1.8 billion slash, while the Commission for Administrative Justice is set for a KES 137.7 million increase. The Auditor General’s budget is set for a marginal KES 24.9 million slash to KES 6.9 billion, while the Controller of Budget’s FY2022/23 allocation is earmarked for a KES 71.3 million slash to KES 631.1 million.
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