President Ruto Assents to the Appropriations Bill 2024
President William Ruto has signed the Appropriations Bill 2024 into law. This follows his decision to reject the Finance Bill 2024 and return it to the National Assembly, rejecting all clauses of the bill.
Ruto explained that he is legally required to assent to the Appropriations Bill by June 30 each year to ensure the continuity of government operations and the provision of critical services. This approval allows the national treasury to authorize expenditures to counties and other organs.
“I have therefore assented to the Appropriations Bill 2024 and instructed the National Treasury to immediately prepare supplementary estimates to reduce expenditure by the amount of revenue that was expected to be generated by the rejected Finance Bill 2024,” the President said.
Financial Projections and Budget Cuts
The Treasury had projected raising approximately Sh302 billion in revenues from the Finance Bill 2024 to fund the 2024-25 Sh3.9 trillion budget, alongside borrowing.
However, with the President rejecting the Finance Bill, part of the anticipated Sh346 billion will not be raised, necessitating budget cuts.
The President reported that he has signed the Appropriations Bill 2024 and instructed the National Treasury to prepare supplementary estimates to reduce expenditure by the revenue expected from the rejected Finance Bill 2024.
The reduction in expenditure, amounting to Sh346 billion, will be shared equitably between the National and County Governments, impacting the executive, legislature, judiciary, and constitutional commissions.
Ruto has referred the County Allocation and Revenue Bill back to Parliament for revision to align with the reduced revenue expectations.
He also directed the National Treasury to submit amendments to the Division of Revenue Act 2024 to reflect the reduced revenues due to the rejection of the Finance Bill.
Austerity Measures
Until the supplementary budget is approved, the President issued a directive that only critical and essential services should be funded, using no more than 15% of the budget.
He emphasized further austerity measures to reduce expenditure, starting with his office and extending to the entire executive arm of government.
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This includes cutting operational expenditures in the Executive Office, such as allocations for the confidential vote, travel, hospitality, purchase of motor vehicles, renovations, and other expenses.
The President proposed that Parliament, the Judiciary, and County Governments work with the National Treasury to undertake budget cuts and austerity measures, ensuring the country lives within its means. This follows an earlier Cabinet decision to cut spending.
President Ruto Assents to the Appropriations Bill 2024
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