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utting lipstick on a pig---
The 2009/10 Budget of the Government of Kenya
Mars Group Kenya / Partnership for Change Report: Nairobi 29th June 2009
On June 11
th
2009, the Kenyan Minister of Finance, Uhuru Kenyatta, read the National BudgetSpeech outlining his proposals for expenditure by the Grand Coalition Government for thefinancial year 2009 – 2010. According to the Minister the budget
“
marks the first and bold steptowards progressively building a better future for our people consistent with our Vision 2030. Inthis regard, the measures I will be proposing throughout my Speech are anchored on the themeof
Overcoming Today’s Challenges for a Better Kenya Tomorrow
.”More than a year earlier, the Grand Coalition Government was established by constitutionalamendments with the sole mandate of delivering outcomes based on the National Accord ofFebruary 28
th
2008 – including taking measures to implement agreed Agenda items according toan implementation matrix for the purpose of:
•
Immediately ending violence, enhancing the security and protection of the populationand their property; restoring respect for the sanctity of human life and restoringfundamental rights and liberties, including the right to freedom of expression, pressfreedom and the right to peaceful assembly
•
Addressing the humanitarian crisis, promoting reconciliation, healing and nationalrestoration, by ensuring assistance to communities affected by the post election violence;and by ensuring the impartial, effective and expeditious investigation and punishment ofgross and systematic violations and violators of human rights
•
Overcoming the political crisis resulting from the fraudulent Presidential election ofDecember 27
th
2007, by crafting a unity government
•
Finding and implementing solutions for long standing national issues including
o
Undertaking constitutional, legal and institutional reform
o
Tackling poverty and inequity as well as combating regional developmentimbalances
o
Tackling unemployment particularly among the youth
o
Consolidating national cohesion and unity
o
Undertaking a Land Reform
o
Addressing transparency, accountability and impunity.This is the second Budget presented by the Grand Coalition Government and the trend hasbecome a matter of urgent national concern. Concern about the Ministry of the Finance whichprepares the National Budget resulted on May 13
th
2009 in a unanimous resolution of Parliamentto require an independent forensic audit of the National Budget over the past three years – i.e.from 2006 to date. That there has been no movement to procure the independent forensic audit isworrying, even as the errors identified by the Joint Committee Enquiry into the supplementarybudget have now been carried over into the 2009-10 National Budget. The independent forensicaudit into the past 3 National Budgets has never been more critical.
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Nevertheless it is possible to state categorically that in common with the 2008 National Budget,the 2009 Budget is largely unresponsive to the challenges of implementing the National Accordby financing its essential aspects, while ensuring public finances are conserved through realausterity and prudential management. For example in this budget the Minister of Finance hasproposed to spend Ksh 606 billion on Government recurrent Expenditure even though heestimates that all tax collected by the Kenya Revenue Authority will not be more than Ksh 569billion. This is incredible deficit budgeting aggravated by his ambitious illogical plan to borrowthe rest of the money needed to meet his total budget of Ksh 865.6 billion.The Uhuru Kenyatta Budget attempts to give the impression that it is a developmental budgetwhen in fact it is maintaining the same trend of consuming all tax revenue on recurrentexpenditure of government.
It is lipstick on a pig.
Role of Members of Parliament:
During the debate on the budget speech, most MPs hailed thebudget in glowing terms such as – ‘historic’, ‘people’s budget’, - motivated largely it seems bythe claim that the budget has increased devolved fund allocation at constituency level and by Mr.Kenyatta’s presidential ambitions. It is shocking that our representatives could have such aresponse to a budget that has nothing to do with the National Accord – the sole mandate of theGrand Coalition Government. More shocking is the blatant incompetence of our Members ofParliament who are totally clueless about Mr. Uhuru Kenyatta’s proposals for expenditure for theyear 2009 -2010. Ask the Members of Parliament if they know or indeed if they care. Ask theMinister for Finance if he knows what is in the estimates he has asked Parliament to approve. Wehazard a guess… Reading a budget speech is not the same as understanding what the speech orestimates contain. Members of Parliament are in recess until July 21
st
2009. Ideally MPs wouldspend their recess talking to constituents and studying the estimates in order to be informedwhen it comes to the Appropriation stage of debate of the Budget during which eachdepartment/Ministry’s budget is deliberated upon.It is important that MPs and their constituents understand what is in the budget. It is importantthat you understand what is in the Budget. We devised a quiz which may help you know thedetails of the National Budget – take it and test whether you could be the next Minister ofFinance!
DOES YOUR MEMBER OF PARLIAMENT KNOW THE ANSWERS TOTHESE SIMPLE TWENTY ONE QUESTIONS?IF THEY DON’T YOU SHOULD BE WORRIED AND DISTURBED!
' Imagine lying on an operating table awaiting surgery then you discover the person about tooperate on you is your neighbour next door, or the mechanic or your watchman would you let him perform the surgery? Now imagine MPs who are clueless on the contents of the budget,would you trust them with your money?'
INTRODUCTION: BUDGET FOR WHAT
1.
What is the Mandate of the Grand Coalition Government?2.
Does the Budget 2009-2010 plan resources for the Grand Coalition Government mandate?
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OVERVIEW OF THE BUDGET
1.
How much in (kshs) does the Budget 2009-2010 provide fora)
Recurrent expenditureb)
Development expenditure2.
What percentage of the Budget 2009-2010 isa)
Recurrent expenditureb)
Development expenditurec)
Debt3.
How much in (kshs) does the Budget 2009-2010 provide fora)
Debt Redemptionb)
Interest on Debt Redemption4.
How much tax money in (kshs) will pay for the 2009-2010 budget?5.
How much borrowed money in (kshs) will pay for the 2009-2010 budget?6.
How much donor money (loans and grants) in (kshs) will pay for the 2009-2010 budget?7.
What percentage of tax money will go to recurrent expenditure?8.
What percentage of tax money will go to development expenditure?9.
How much in (kshs) has Mr. Kenyatta provided for each of the following recurrentbudget line items for the recurrent expenditure of the Government of Kenya for the year2009-2010?
Current Grants to Government Agencies & Other Levels Government
Basic Salaries - Permanent Employees
Personal Allowance Paid as Part of Salary
Routine Maintenance - Other Assets
Specialized Materials and Supplies
Other Operating Expenses
Basic Wages -Temporary Employees
Domestic Travel and Subsistence and Other Transport Costs
Rentals of Produced Assets
Training Expenses
Subsidies to Non-Financial Public Enterprises
Utilities Supplies & Services
Foreign Travel and Subsistence and other Transportation Costs
Fuel Oil and Lubricants
Printing, Advertising and Information Supplies & Services
Office and General Supplies and Services
Communication, Supplies & Services
Purchase of Specialized Plant Equipment and Machinery
Hospitality Supplies and Services
Budget Reserves
Acquisition of Strategic Stocks
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