EDITORIAL: Curb funds wastage – Business Daily

The Treasury should exhaust all avenues for wasteful recurrent expenses before cutting the development budget.

There is still room for further cuts on funds allocated for travelling, entertainment and hospitality.

Sealing all the loopholes that corrupt officials use to steal public resources will also ease pressure on the government.

A cash hitch has compelled the Treasury to announce further cuts in the allocation for development projects to plug a Sh161 billion Budget hole, a move that will hurt job creation and upgrade of infrastructure projects.

It is through development spending that the government can be able to spur the growth of an economy that is already struggling. The government remains the biggest buyer of goods and services and increased project spending has an effect on economic growth, which is projected at less than six percent this year.

Reduced spending on development projects such as roads, water, power plants, bridges, real estate and electricity transmission lines slows down economic activities, further hurting government revenue. Kenya Revenue Authority has been missing revenue targets every financial year.

This development is also coming at a time the country needs major infrastructure upgrades and repairs following a prolonged rainy season that left some roads damaged.

A freeze on development spending will hurt communities relying on the roads to move and transport their goods to the market.