Parliament has been reviewing the budgets of various government ministries and departments this week in the wake of a decree by the National Treasury to cut back on recurrent spending in response to a tanking economy.
However, the National Treasury does not seem to have the vision of how to deal with a biting cash crunch and, importantly, resuscitating a depressed economy. It is hurtling from one pronouncement to another without consistency and direction.
Some departments and agencies that are being pushed to make drastic cuts include the Teachers Service Commission, which has been asked to forfeit some Sh364 million, and the Judiciary, whose case is becoming a tragi-comedy as the Treasury slashes, reinstates and slashes again its funding.
What is troubling is the unpredictability of the Treasury. A week ago, it went to Parliament to seek additional Sh85.5 billion for development, raising the overall national budget to Sh3.13 trillion.
The ‘development projects’ include paying pending loans for the Standard Gauge Railway, a project that has failed to bring in enough returns to offset its liabilities.
Some Sh16.7 billion is earmarked for SGR and Sh7.3 billion for the proposed double-decker road from the Jomo Kenyatta International Airport to Westlands in Nairobi.
The question that quickly comes to mind is: what are the priorities for the government? How does it want to pull out of the hole? Does it want to continue digging one hole to fill another?
Reports during the week exposed a rather unfortunate scenario of how the National Treasury has been doctoring figures to give the public the impression that all was well when the country was actually careering down the cliff.
The latest Economic Survey indicated that the country had achieved a 6.3 per cent economic growth last year, a figure that astonished everyone since businesses have been collapsing, employers retrenching, unemployment rising and crime rate soaring.
The Kenya Revenue Authority has consistently failed to achieve its tax collection targets, an indication of a depressed economy. Worse, the tax burden is piling up at an alarmingly high rate.
Looked at in totality, the country is finding itself in a financially precarious situation, but there is no visible remedial strategy.
This is why we ask acting National Treasury Cabinet Secretary Ukur Yatani to undertake thorough examination of the economy and undertake urgent practical corrective measures.
Populist pronouncements, political meddling and posturing won’t help.
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