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Making of the budget: What every Kenyan needs to know
MPs are unlikely to take the crucial vote on the Finance Bill, 2024 on Tuesday, June 18.
They could make the decision later in the week. Many Kenyans think the vote will take place on Tuesday. Budgeting is still at an early stage. Lawmakers are expected to consider the Appropriations Bill, 2024 and the Finance Bill, 2024.
The consideration of the two bills goes hand in hand as any adjustment affects the other. The budget highlight by National Treasury Cabinet Secretary Njuguna Ndung’u on Thursday was a mere ceremony as provided for in the Public Finance Management Act and the Standing Order.
The presentation of the budget highlight by the minister does not affect the legislative process. That means the power to rescue Kenyans from the punitive taxes proposed by Treasury lies with MPs. The law says the National Treasury should submit proposals to Parliament by June 30 for publication and introduction in the House for reading.
Thereafter, it should be committed to the Finance and Planning Committee of the National Assembly. While the Finance Bill only deals with revenue-raising measures, the Appropriations Bill looks into government expenditure.
In his communication to lawmakers, Speaker Moses Wetang’ula was categorical that Prof Ndung’u’s pronouncements would not influence the legislation.
The government targets to raise more than Sh300 billion in taxes. If some of the proposed measures are dropped, the appropriations law would also have to be amended.
The Finance and Planning Committee and the Budget and Appropriations Committee are expected to table their reports on Tuesday or Wednesday.
Members will debate the reports and adopt or reject them at the second reading. If any proposal in the bill is dropped in the House, it automatically affects the other bill. They go hand in hand as per the court ruling in 2018.
Following the enactment of the Appropriations Act, the Budget and Appropriations Committee ensures that reallocations, increases or decreases are incorporated in the republished final approved budget books.
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