Tough times lie ahead for parastatals, ministries among other departments, following government attempts to slash expenditure by almost Sh100 billion. This is with effect from July when a new fiscal year is set to begin.
National Treasury Cabinet Secretary Ukur Yattani on Wednesday called upon government entities to avoid leaving beyond their means. This was in an attempt to ensure that agencies cut costs which seemed non-essential like travelling, advertisements and others like such.
In a meeting address in an attempt to draw 2020/21 budget, Yattani noted that those were just among attempts to avoid funding deficit which stood at Sh600 billion, owing to government borrowings to fund development yet unmet target revenues.
"We shall work with the measures put in place. We have no choice but to abide by the regulations since we require funds to pump into the areas which will see economic growth," said Ukur.
"We must learn to work with what is affordable. Whatever KRA generates is what will be used since we have totally exhausted all other means," he added. While imposing the expenditure measures last September, Yatani pointed out mostly on foreign trips by government officials which really drained the economy.
Jubilee administration has of late been castigated for burdening Kenyans with heavy debts, though it has defended itself through claims that borrowing was in an attempt to fund state projects.