Going forward, we want to see a reduction on recurrent spending.
For the second time in the current financial year, we are witnessing a situation where some ministries and government agencies are unable to spend their development budget.
And this even as they had no problem with the recurrent expenditure.
For its part, the Treasury has seen an opportunity to continue cutting project spending during review of State expenditure through the supplementary budget.
The Treasury Wednesday slashed Sh40.8 billion allocated for development and increased spending on items like salaries and travel by Sh23 billion.
This is not the path a country that needs to spend more on projects to ease the rising youth unemployment should take.
The government remains the biggest buyer of goods and services and reduced spending has an effect on economic growth.
State spending puts money in private hands through demand for raw materials, which ultimately creates new jobs.
Still, we need to ramp up spending on roads, power plant and water infrastructure to attract investors that will help tackle the country’s acute youth unemployment problem.
Going forward, we want to see a reduction on recurrent spending.
Agencies that are unable to spend development budget must give way.
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