Which deficit - when ministries are unable to spend 218B kshs

[RV Pundit]

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https://www.businessdailyafrica.com/economy/Ministries-return-Sh218-billion-Treasury/3946234-4723382-vhcknbz/index.html

[GeeMail]

It remains a deficit because the money was allocated and was meant to be spent. It may also be an indicator that the corruption purge is working. More officers are afraid to append signatures to the procurement papers where most of the money disappears.

[RV Pundit]

It over-allocation - Big unrealistic budget. I think parliament should use this report to re-allocate the money to ministries with ability to spend - for example for building roads, rails, water supply, sewage and electricity.

It remains a deficit because the money was allocated and was meant to be spent. It may also be an indicator that the corruption purge is working. More officers are afraid to append signatures to the procurement papers where most of the money disappears.

[GeeMail]

True. From a budgeting perspective, an over-allocation by about 10% is within the limits. It's not very wild to guess why someone might want to inflate budget.  I'm surprised people are thinking ministries lack capacity to absorb/eat even donor funds.

[hk]

It over-allocation - Big unrealistic budget. I think parliament should use this report to re-allocate the money to ministries with ability to spend - for example for building roads, rails, water supply, sewage and electricity.

Treasury should use this opportunity to retire  local debt instead of rolling over. This would increase the liquidity in the market and help lower the CBR rate to below 9%. Over allocation is what has led to alot of inflated projects e.g NYS. Kimani Ichungwa chairman of ways and means committee needs to be fired, Mbadi would do a better job.

[GeeMail]

June is always a busy month in most parastatals and ministries. Workshops, luncheons, reports being launched, trainings etc. The activity is at fever pitch "to absorb the allocations." Then they return excess change. Over and over again every year.

[RV Pundit]

Precisely. This is more serious corruption.  For sure I have seen the same happen even at UN. I think it upon parliament as budget makers to improve the budget process and re-allocate funds during suplimentary budget - to really high priority. Of course our judicial systems sometimes ties down procurement of good and services beyond the budget time.

June is always a busy month in most parastatals and ministries. Workshops, luncheons, reports being launched, trainings etc. The activity is at fever pitch "to absorb the allocations." Then they return excess change. Over and over again every year.

[vooke]

[GeeMail]

It's really surprising that even allocations for salaries were not absorbed. It seems most Kenyan ghost workers have died of fright from the phoney war on corruption.