Fuel, fertiliser subsidy, polls security costs blow Sh64 billion budget holeThursday May 26 2022
Fuel prices and fertiliser subsidy as well as security-related expenditure in the wake of the August 8 polls have forced the Treasury to spend an additional Sh64 billion of taxpayers’ cash in the budget for the financial year ending June.
The Treasury has tabled second supplementary budget estimates indicating the State will spend an additional Sh37.8 billion to stabilise fuel prices to June 30.
The documents show that Sh15.8 billion has already been paid out to oil marketers between March and April.
The Treasury is also seeking House approval to regularise expenditure of Sh1 billion fertiliser subsidy, Sh1 billion for Naivasha Inland Container Depot, Sh8 billion for road projects and Sh1.4 billion on enhanced security operation as the country prepare for the General Elections.
The mini-budget follows the Sh108 billion first supplementary budget tabled in Parliament in February.
The second supplementary estimate has now pushed the unforeseen expenditure to 10.5 percent from the original budget presented in April last year, widening the budget deficit further.