The Supplementary Appropriation and Division of Revenue Bills 2024
The Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024 have been signed into law today by President William Ruto. The President said that the Bills are meant to provide more resources the government needs to improve on its service delivery and economic management.
The Supplementary Appropriation Bill 2024
The Supplementary Appropriation Bill 2024 is a legislative measure that aims to adjust the country’s budget allocation for the financial year. Supplementary Appropriation bills are typically introduced to address urgent or unforeseen financial needs that may come up after the original budget has already been approved. They basically allow the government to reallocate funds to areas that require additional resources or to cover expenditures that were not anticipated during the initial budget planning.
Article 223 of the Kenyan Constitution is what allows the National Government to spend money that has not been appropriated by Parliament in emergency situations. This provision was designed to enable the Government to address urgent and unforeseen needs without waiting for the formal budgetary process. Parliament’s role is to ensure legislative oversight and accountability for the funds spent. This means parliament must review and approve these expenditures to legitimize them formally.
Key aspects of the Supplementary Appropriations Bill 2024 include:
- The Bill authorizes the Government to take Ksh 102.3 Billion from the Consolidated Fund and apply it to other areas as it sees fit.
- The Bill targets the agricultural sector, particularly through allocations to fertilizer, which is essential for boosting productivity and supporting farmers.
- The Bill allocates significant resources to the education sector, which is a critical area for the nation’s development.
- The Bill also makes the security sector a priority by giving it funding that is vital for maintaining public safety and government administration.
- The Bill reduces the overall budget by 132 Billion, showing the government's commitment to being fiscally responsible by reducing deficits and debt accumulation.
The Supplementary Appropriations Bill is crucial for the government because it ensures funds are directed to priority areas for the remainder of the financial year that ends on the 30th of June, 2024.
The Division of Revenue Bill 2024
The Division of Revenue Bill 2024 is the other piece of legislation that was assented to by the President today. It is a critical piece of legislation that outlines how revenue that has been raised nationally is distributed between the national government and the county governments. The Bill is essential for ensuring that both levels of government receive the funding they need to perform their constitutionally mandated functions.
Here are the key points about the Bill:
- Purpose: It aims to provide for the equitable sharing of revenue raised nationally, as stipulated by Articles 202, 203 and 218 of the Kenyan Constitution.
- Allocation: The Bill proposes an allocation of Kshs391.1 Billion to County Governments, which is an increase from the previous year’s allocation of Ksh 374.5 Billion. This represents 24.9% of the most recent audited revenue approved by the National Assembly.
- Objectives: The increase in allocation is meant to help County Governments enhance service delivery and perform their functions as outlined in the Fourth Schedule of the Constitution.
- Considerations: The Bill takes into account trends in revenue performance, national government expenditures (especially for debt servicing) and the government’s fiscal consolidation plan aimed at reducing the fiscal deficit to 3.9% of the GDP in the 24/25 financial year.
The Bill was sponsored by the Chairperson of the Budget and Appropriations Committee and is part of the broader fiscal framework outlined in the 2024 Budget Policy statement. It is crucial for the financial planning and development of both the National and County governments in Kenya.
