Delayed release of treasury cash hurts project spending


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Delayed release of treasury cash hurts project spending


Treasury CS Ukur Yatani. PHOTO FILE | NMG

Summary

  • Government ministries, departments and agencies (MDAs) spent only 14.2% of the targeted development allocation in the first quarter of fiscal year 2019/20, which also saw many other obstacles in execution from the budget.
  • Total development spending amounted to Sh 99.7 billion while recurrent spending was Sh 229.5 billion or 28.5% in the first three months of the year.
  • The low absorption of targeted funds results from the late release of treasury liquidity and the late purchase of goods and services, the Budget Controller (CoG) report for the period July to September of last year showed.

Government ministries, departments and agencies (MDAs) spent only 14.2% of the targeted development allocation in the first quarter of fiscal year 2019/20, which also saw many other obstacles in execution from the budget.

Total development spending amounted to Sh 99.7 billion while recurrent spending was Sh 229.5 billion or 28.5% in the first three months of the year.

The low absorption of targeted funds results from the late release of treasury liquidity and the late purchase of goods and services, the Budget Controller (CoG) report for the period July to September of last year showed.

Total spending during the quarter was Sh 564.2 billion, which was 20.6 percent of the annual gross estimate against the 25 percent that would be expected for the pro-rated period.

“Total national government spending in the first three months amounted to 564.2 billion shillings, or 20.6 percent of the annual gross estimate. Raw recurring estimates [were] Sh229.5 billion representing 28.5% of the annual gross estimates and Sh99.7 billion spent on development activities, ie an absorption rate of 14.2%, ”the report said.

The report states that during the period, MDAs were late in submitting quarterly financial reports to the budget controller, resulting in the delay in the publication of the quarterly report.

Uploading procurement plans and budgets to the Integrated Financial Management Information System (IFMIS) was also slow and discrepancies between the Integrated Payroll and Personnel Database (IPPD) and data from the ‘IFMIS have been observed.


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