Ruto Cuts Budget in 8 Critical Sectors Including HELB & CDF

Ruto Cuts Budget in 8 Critical Sectors Including HELB & CDF

Ruto Cuts Budget in 8 Critical Sectors Including HELB & CDF

In a letter to the National Assembly, the National Treasury, represented by Cabinet Secretary Njuguna, stated that the Finance Bill’s proposed revisions would result in a Ksh200 billion revenue deficit.

Because of this, the Treasury has issued a warning that if Parliament passes the modified Finance Bill, it will stop funding vital industries like education and internships.

Notably, the Finance Committee reported that the Bill was changed in response to protests across the country spearheaded by members of Generation Z.

Part of the letter stated, “The National Assembly prescribes restrictions on the level of borrowing by the National Government and ensures that the total revenues raised are consistent with the approved fiscal framework and the Division of Revenue Act.”

“If the revenue-raising measures contained in the Finance Bill 2024 are not approved by the National Assembly, there will be a likely revenue shortfall of approximately Ksh200 billion.”

To cover the deficit, some areas that will be affected include vocational training centres, university funding, cash transfers for senior citizens as well as confirmation of medical and Junior Secondary School interns. 

Other critical sectors to be affected include the Constituency Development Fund (CDF), school feeding program and funding of sports academies. 

Technical and Vocational Education and Training (TVET) and Technical Training Institutions will see a slash of Ksh800 million which was to fund ongoing projects. 

In the State Department for Higher Education and Research, a Ksh3.2 billion has been slashed from the Higher Education Loans Board (HELB). 

The Treasury has further proposed a Ksh2 billion budget cut for the Differentiated Unit Cost and a Ksh3 billion slash on infrastructure projects at the state department. 

Education will be most affected by the budget cuts as another Ksh3.4 billion has been slashed from the State Department for Basic Education which was supposed to facilitate school feeding programmes and infrastructure for academic institutions. 

Cash transfers for senior citizens have been slashed by Ksh5.5 billion which will affect over 800,000 Kenyans. 

Despite earlier strikes that had paralysed the education and health sector, the Treasury has proposed slashing Ksh3.7 billion from confirmation of medical interns and a further Ksh18.9 billion meant for confirmation of JSS interns. 

The confirmation of interns to permanent and pensionable terms and the appointment of new JSS interns would be postponed indefinitely due to the Ksh18.9 cut intended for the Teachers Service Commission (TSC).

Notably, Ksh1 billion more that was intended for the Public Service Internship program will be taken out by the Treasury.

The Treasury has suggested cutting the National Government CDF by Ksh15 billion.