59 000 000 000 discrepancy

MPs have questioned the Sh59 billion discrepancy between the budgetary projections contained in the budget policy statement and the final estimates laid before the House by Finance minister Uhuru Kenyatta on Thursday.

The MP for Eldoret East, Prof Margaret Kamar, and Maragua’s Elias Mbau said the policy statement presented to the House in March put the expected revenue to be collected at Sh629 billion, but the final estimates had the Sh688 billion figure.

Prof Kamar questioned the huge variation of Sh59 billion and wondered if the minister does not have the right parameters to estimate the revenue to be collected at the time of preparing the budget policy statement.

“There is a huge discrepancy between the policy statement and the Budget, and the variation shows that the statement was premature and prepared in a hurry,” she said.

“The minister wanted only to satisfy the requirements of the House.” The policy statement gives projections and helps in planning of allocations to priority areas and in the rationalisation of the various budgetary items.

It is aimed at reducing wastage by focusing on priority areas. The Finance minister is required to lay the statement before Parliament before every March 21.

Prof Kamar expressed concern that Treasury had not paid attention to public hearings that are conducted before the Budget, saying that this makes the people feel left out.

The MPs were contributing to debate on the 2010/2011 Budget. Mr Mbau, who chairs the parliamentary budget committee, also expressed concern that the ministry had allocated Sh59 billion, which was not reflected in the policy statement.

Rarieda’s Mr Nicholas Gumbo said the Budget only makes sense if it translates into a better life for Kenyans. “The Budget will have failed if it doesn’t help to bridge the huge gap between the rich and the poor,” he added.

Mr Sospeter Ojaamong’, the legislator for Amagoro, urged the government to pay greater attention to the hiring of more teachers.