Parliament approves Sh58bn mini budget

Parliament in session. MPs have approved the withdrawal of Sh58.8 billion from the Consolidated Fund January 8, 2013 to keep the government going until the next financial year begins in July. FILE

What you need to know:

MPs who passed the Supplementary Budget Estimates:

1. Abdikadir Mohammed 9. Raphael Letimalo

2. Sophia Abdi Noor 10. Charles Kilonzo

3. Mohammed Gabbow 11. Wilberforce Ottichilo

4. Muriuki Ruteere 12. John Mututho

5. Wavinya Ndeti 13 Ekwee Ethuro

6. Sospeter Ojaamong 14 Aden Duale

7 Njeru Githae 15 Gitobu Imanyara

8. Martin Ogindo

MPs have approved the withdrawal of Sh58.8 billion from the Consolidated Fund to keep the government going until the next financial year begins in July.

By passing the Supplementary Budget Estimates, the MPs also approved the allocation of Sh6.8 billion to county governments so they can get down to business after the elections in March.

With the 10th Parliament is in its last hours and MPs’ eyes on the General Election, however, their lethargy was evident and the estimates were passed by a mere 15 MPs, half of the 30 required for a quorum.

Finance minister Njeru Githae was a relieved man as the MPs, with Deputy Speaker Farah Maalim’s urging, agreed to approve the mini-budget despite his failure to adjust the allocations to the devolved governments as per their demands last week.

But his joy was short-lived.

The MPs, with Mr Maalim on their side, forced the adjournment of the special morning sitting after an hour on the basis that the four bills Mr Githae introduced hurriedly last week needed further consultations before debate.

Transition period

Mr Maalim ruled that the Finance minister would first need to meet the Budget Committee and explain why he had failed to publish a bill to provide for the division of revenue between the counties in the transition period.

Members of the Budget Committee had protested because they had not had the chance to scrutinize the Transition County Allocation of Revenue Bill, The Division of Revenue Bill, The County Allocation of Revenue Bill and the Transition County Appropriation Bill before their scheduling for the Second Reading.

Earlier, to get the MPs on his side on the estimates, Mr Githae said the total allocation for functions carried out at the county level is actually Sh185.6 billion but since they have not been established, it would not be practical to allocate them money in the last four months of the financial year.

With this in mind, then, their allocation in the last four months would be Sh60 billion, which is way above the recommendation to Parliament made by the Commission on Revenue Allocation for Sh30 billion.

He said Treasury had agreed with the Commission on the Implementation of the Constitution, CRA, the Transition Authority and the Attorney General that there would be no need to provide for the division of revenue in this financial year because that has been made in the budget.

“Let us be practical, Mr (Aden) Duale. Tell me, how can you purchase a quarter of a car? How can you employ a quarter of a secretary? These allocations are already there but they are with the central government” he said.

He was supported by Naivasha MP John Mututho, who agreed with the assertion that the counties have been allocated money, only that it is still under the control of ministries, which would give up some functions to the devolved units.

Imenti Central MP Gitobu Imanyara also agreed that “on the face of it”, the bills MPs demanded and which were subsequently introduced on Thursday afternoon complied with the requirements of the Constitution.

MPs have also freed up Sh32 billion for the increased salaries for teachers, lecturers and the police, Sh3.2 billion for the construction of county headquarters, Sh6.7 billion for the Independent Electoral and Boundaries Commission and Sh7.2 billion for internal security and the Kenya Defence Forces.

The Kenya Revenue Authority gets Sh2 billion, Sh1.4 billion is for expenses related to Constitutional reforms and transitional expenses while Sh1.4 billion is to be used for the treatment of terror attack victims.

While the IEBC needs Sh11.2 billion in case there is a run-off for the presidency,  Sh5 billion has been put in the contingency fund.

The government also plans to borrow Sh30.7 billion to meet its obligations.