Treasury to rush budget process as election year dawns

The National Treasury is set on fast-tracking the budget making process as the 2022 General Election dawns.

For instance, Kenyans will have a view of the next proposed taxes (the Finance Bill) by the end of January.

In a notice, the exchequer confirmed the budget making process for the 2021/22 financial year will start in August as opposed to its usual starting time in September.

“Cognizant that year 2022 is an election year, there is need to fast-track the National Fiscal budget process to ensure smooth government operations. It is therefore imperative that the process of preparing the 2022 Finance Bill begins early enough to ensure that the Finance Act, 2022 is enacted before Parliament breaks in preparation for the General Elections,” read the notice.

Subsequently, the Planning Ministry has opened for proposals from the public and private sectors on economic policy measures, to be integrated in the upcoming budget cycle.

Recommendations to be embedded in the budget require to resonate with the Economic Recovery Strategy (ERS) which aimed at steering post COVID-recovery plans.

Treasury will accept proposals no later than August 30.

According to estimates contained in the 2021 Budget Policy Statement (BPS), next year’s budget will sit at a record Ksh.3.9 trillion surpassing the just adopted Ksh.3.6 trillion spending plan for the 2021-22 financial year.

Net spending in the period is projected at Ksh.3.2 trillion while debt redemption stands at Ksh.715.7 billion.

The budget is expected to be financed from Ksh.2.4 trillion in total revenue and Ksh.775.3 billion in net loan financing.