First quarter analysis of the 1999/2000 budget

First quarter analysis of the 1999/2000 budget

The Kenyan budget: do the figures add up?

Analysis of first quarter allocation and expenditure trends in seven ministries - all considered critical to poverty eradication. Looks at whether allocations made correspond with expenditure incurred.

Finds that:

  • Expenditure on recurrent expenditure is about seven times higher than development expenditure
  • rate of absorbtion of recurrent allocation by ministries is much higher than of development allocations
  • ministries have spent more than they were allocated in the first quarter
  • diparities exist between projects identified in the Public Investment Programme (PIP) and the Printed Estimate (PE or annual budget). There are ghost projects being funded
  • less than half the total amound of issues are being sent to the districts
  • first quarter issues are generally less that first quarter ceilings as contained in the PE
  • ministries that are the highest absorber of recurrent allocations are the lowest absorbers of development allocations
  • no ministry/project had spent more than 6% of the funds allocated to it in the 1999/2000 PE in the first three months of implementation

Concludes:

  • there is considerable disparity between PIP projects and PE projects
  • planning and budgeting procedures are not clear making accurate planning, implementation and monitoring very difficult
  • frequent budget cuts and the little impact public finance management has had on poverty reduction shows the manner in which projects are identified and implemented is inappropriate
  • reform of Kenya's fiscal management requires both administrative, legal and insitutional restructuring for any desired results to be achieved

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