Treasury Threaten to Cut Ksh.18.9B TSC Budget for 46,000 JSS Teachers Confirmation

Treasury Threaten to Cut Ksh.18.9B TSC Budget for 46,000 JSS Teachers Confirmation

The Teachers Service Commission (TSC) faces significant budget cuts as part of broader austerity measures outlined by the National Treasury.

These cuts are a response to amendments proposed in the 2024 Finance Bill, which, if passed, would lead to substantial reductions in funding across various government sectors.

The TSC stands to lose Ksh.18.9 billion, primarily impacting its ability to confirm Junior Secondary School (JSS) teachers.

The National Treasury has informed Parliament that adjustments to the 2024 Finance Bill could result in a Ksh.200 billion revenue shortfall in the 2024/2025 budget.

Treasury Cabinet Secretary Njuguna Ndung’u conveyed this in a letter dated June 19 to the National Assembly’s clerk.

He outlined budget cuts across various government departments if the proposed tax amendments are not approved.

Ndung’u emphasized that if the Finance Bill 2024 passes as proposed, the National Assembly can proceed with the Appropriations Bill as originally outlined.

However, failure to approve the revenue-raising measures would likely lead to the significant shortfall of approximately KSh.200 billion.

TSC Budget Cut

Key areas facing substantial cuts include the Department of Energy, which stands to lose Ksh.21.7 billion affecting projects like last-mile connectivity.

The Teachers Service Commission faces a Ksh.18.9 billion cut for Junior Secondary School teacher confirmations, while the State Department of Higher Education expects an Ksh.8.3 billion reduction affecting Higher Education Loans Board allocations.

Additionally, the National Government Constituencies Development Fund (NG-CDF) and the State Department for Roads are both set to undergo a Ksh.15 billion cut for ongoing road projects.

Other reductions include Ksh.5 billion each for the fertilizer subsidy program and county equitable share.

Further allocations facing cuts include Ksh.451 million for the Executive Office of the President, Ksh.500 million for State House, Ksh.2 billion for the State Department for Internal Security, Ksh.4.6 billion for the State Department for ASALS & Regional and Northern Corridor Development, Ksh.7.7 billion for the Defence Ministry, and Ksh.1.8 billion for the State Department for Foreign Affairs.

The Treasury plans to outline additional measures by Friday to achieve a total reduction of Ksh.21.6 billion.

During the presentation of the 2024/25 budget on June 13, CS Ndung’u announced Kenya’s intention to raise Ksh.3.992 trillion, with Ksh.333.8 billion from external sources and Ksh.263.2 billion from the domestic market.

The 2024 Finance Bill currently under debate aims to generate Ksh.346.7 billion in revenue through increased taxation.

However, public opposition has prompted the Finance Committee to revise some proposed levies, including those on bread, motor vehicle circulation tax, and excise duty on vegetable cooking oil.

Meanwhile, the 2024 Appropriations Bill, introduced in Parliament and scheduled for consideration on Thursday, seeks to allocate Ksh.1.8 trillion from the Consolidated Fund to cover public expenditure during the fiscal year.

Treasury Threaten to Cut Ksh.18.9B TSC Budget for 46,000 JSS Teachers Confirmation

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