Treasury Allocates Ksh.656.6 Billion to Education, Ksh.358.2B to TSC
Treasury Cabinet Secretary (CS) Njuguna Ndung’u announced that the government has proposed a total allocation of Ksh. 656.6 billion, accounting for 27.6% of the total expenditure, to the education sector.
This substantial budget includes Ksh. 358.2 billion designated for the Teacher Service Commission (TSC).
“The government has proposed a total allocation of Ksh. 656.6 B or 27.6% of total expenditure to the education sector. This includes Ksh. 358.2 B to the Teacher Service Commission.”
Key Allocations
The proposed budget includes:
- Ksh. 9.1 billion allocated for free primary school education
- Ksh. 5 billion dedicated to examination fee waivers
- Ksh. 13.4 billion set aside for converting junior secondary school intern teachers into permanent and pensionable employees under TSC
“Ksh13.4 Billion set aside for conversion of JSS intern teachers into permanent and pensionable employees of TSC.”
Prof. Njuguna Ndung’u emphasized that these allocations reflect the government’s commitment to enhancing the education sector.
Increased Taxes as a Necessity
Treasury CS Njuguna Ndung’u has emphasized that raising taxes is the only feasible solution left for the government as it struggles to fund increased expenditures.
This declaration was made during his presentation of the 2024-25 budget estimates to the National Assembly.
Ndung’u highlighted the government’s challenging position, needing to provide services to Kenyans within a budget capped at Sh3.92 trillion while grappling with limited revenue sources.
Ndung’u explained that the government faces a significant issue with three aspects. The primary concern is the rising demand for increased government spending, which necessitates financing either through taxes or debt.
However, borrowing is not a viable option due to the existing ceiling on how much the government can borrow, especially given the current economic conditions in the country.
Limitations on Tax Increases
The CS also pointed out that while increasing taxes appears to be the only solution, there are significant constraints on how much taxes can be raised.
He noted that the public debt accumulation and the economy’s debt-carrying capacity impose further limitations on mobilizing higher tax revenues.
The 2024-25 budget is the largest in Kenya’s history and the second since President William Ruto assumed office.
The National Treasury has proposed various measures to meet its revenue targets, including introducing new taxes as outlined in the Finance Bill, 2024.
Budget Allocation Breakdown
The proposed allocation for the Sh3.92 trillion budget includes:
- Recurrent Expenditure: Sh1.58 trillion
- Development Expenditure: Sh727.9 billion
- Consolidated Fund Services: Sh1.21 trillion
- Equitable Share for Counties: Sh400 billion
To finance the budget, the government aims to collect Sh2.91 trillion from ordinary revenue, with a significant portion expected through proposals in the Finance Bill, 2024. An additional Sh441 billion is anticipated from ministerial appropriations in aid.
ALSO READ: TSC Allocated Funds to Employ 46,000 JSS Intern Teachers Under Irreducible Minimums
Despite these efforts, there remains a projected deficit of Sh508.9 billion. The plan is to cover this deficit by borrowing Sh257.9 billion from domestic lenders and sourcing Sh256.7 billion from international lenders.
Ndung’u’s remarks underline the financial constraints facing the government and the tough decisions ahead in balancing increased expenditure with sustainable revenue sources.
Treasury Allocates Ksh.656.6 Billion to Education, Ksh.358.2B to TSC
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