MPs approve mini-budget with further cuts on development allocation

Parliament has further re-organised the current financial year’s budget and reinstated Sh6.7 billion that had been chopped off for roads and payment of counties leased medical equipment.

MPs Wednesday approved the first mini-budget for the current financial year, which contains further cuts on development spending to free up cash to ease the effects of drought, doctors’ and lecturers’ strikes as well as more funds for elections.

The Budget and Appropriations Committee (BAC) reversed its earlier report that proposed to cut Sh5 billion from the development budget for the Roads ministry.

The money was meant for construction and maintenance of low volume seal roads.

The committee also reinstated Sh1.7 billion that had been reduced in the Health sector meant for the medical equipment leased to counties.

Part of the money will go into paying US firm General Electric, which provided the leased medical equipment to 94 hospitals under counties.

The MPs further reversed an allocation of Sh4.5 billion to the ministry of Education that had been allocated under the Secondary Education Programme for school infrastructure.

BAC chairman Mutava Musyimi said the Sh4.5 billion, which is part of the Sh10 billion that the High Court stopped the Treasury from allocating to CDF, would be distributed once the House forms a committee on the matter.

The BAC had distributed the Sh10 billion (Sh4.5 billion to Education) and Sh5.5 billion to roads infrastructure.

“Deletion of sub-paragraph (ii)…on recommendation relating to the proposed increment for the State department of Education,” BAC said in fresh amendments to its earlier report.