Treasury seeks to change dates for 2017 Budget

Treasury Cabinet Secretary Henry Rotich is hoping to read the 2017/2018 Budget two months earlier to avoid challenges that may come with next year’s elections.

The Budget should ideally be read in June next year but because the General Election is scheduled for August 8, Mr Rotich wants MPs to scrutinise and approve it in January next year so it can be passed in April rather than June 2017.

Mr Rotich said his ministry hopes to start preparing the Budget by mid-July this year.

“Parliament and other stakeholders will have to work seamlessly and under very tight timelines,” Mr Rotich told MPs currently meeting at the Serena Beach Hotel in Mombasa.

To comply with the Constitution, Treasury will discuss with Parliament and other stakeholders on the changes that needs to be made to the budget calendar during elections.

“We will also explore the possibility of amending the Public Finance Management Act to provide for special cases such as elections,” he added.

The special calendar shows Budget Estimates will be submitted to Parliament by end of January and not end of April.

“To achieve these timelines, we need to work seamlessly with Parliament and all other stakeholders,” said Mr Rotich.

This will also require Kenya to reach an agreement with other East African Community nations so they can allow her to read the Budget earlier than them.

In EAC, budgets are read on the same day, which also ensures no member country comes up with taxation measures contrary to the agreements and protocols signed by the member states.

Mr Rotich said the funding for the next elections is split between the 2015/16, 2016/17 and 2017/18 financial years.

CONSULTATION
National Assembly Speaker Justin Muturi had earlier warned of a possible financial crisis if the election date remains in August as Parliament would possibly have adjourned sittings two months before the elections.

The Elections Act requires parties to finish their nominations 60 days to elections.

He had argued that in an election year, it would be difficult to get the requisite quorum to approve the Budget in June.

“I’m quite happy with the proposals to revise the budget timelines,” said Mr Muturi, “But there would have to be consultations with many other people…the Council of Governors and others and I did not see that factored in your presentation.”

Mr Muturi said the clause setting out the quorum for either House ought to be removed as it would make it difficult for the House to transact business because in an election year, MPs don’t attend sittings.
Alternatively, Mr Rotich said elections should be moved to December so they do not interfere with the Budget.