Treasury. It has reduced State House and Parliament's allocations. [Photo: theeastafrican.co.ke]
State House and Parliament are among state organs that have been hit with drastic budget cuts just three months into the financial year.
A circular by the National Treasury indicates that most recurrent budget lines have had their allocations reduced by 75 percent other than domestic travel that has been slashed by 20 percent.
In a circular to all accounting officers dated September 25, Treasury CS Henry Rotich indicated that the Cabinet approved the cuts as a way to reduce costs.
The circular comes only three months into the financial year and may affect a large number of suppliers who rely on government tenders.
"Following low performance of revenue and emerging priorities namely repeat of the presidential election, insecurity, drought response measures and GoK counterpart funds requirements, the Cabinet has approved austerity measures in the recurrent budget," Rotich said in the circular.
He added; "The development budget has also been rationalised to accommodate the resultant budgetary requirements."
This means that the government will spend less on communication, foreign travel, training, hospitality, routine maintenance and purchase of vehicles and furniture.
The Presidency is one of the main casualties in the revisions with its allocation going down by Sh1.05 billion, with 835.4 million being from recurrent spending.
Deputy President William Ruto's budget alone has been reduced by Sh837.4 million which is 30% of the allocation approved in June.
Parliament is also a major casualty of the budget cuts with the Parliamentary Service Commission having its allocation reduced by Sh5.5 billion.