Thursday, October 3, 2024 - Treasury Cabinet Secretary John Mbadi has disclosed how President William Ruto spent Ksh415 billion against the law.
In a report, Mbadi revealed that
out of the Ksh766 billion borrowed by Ruto’s government in the 2023/2024 fiscal
year, it spent Ksh415 billion on recurrent expenditure while allocating only
Ksh350 billion on development.
The move by the government to
spend more on recurrent expenditure rather than development breached section 2C
of the Finance Management Act of 2012.
The Act sets the minimum
threshold for recurrent expenditure to avoid spending all revenue and debt on
financing cyclic activities.
According to the 2024 Budget
Review and Outlook draft paper released by the CS, the Ksh415 billion was an 82
per cent rise compared to the previous period when the government spent 227
billion on recurrent expenditure as per the law.
The latest report by the
National Treasury highlighted the main reasons behind the government's missed
tax collections amidst spending pressure.
The Kenyan DAILY POST
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