By Morara Beckham
Treasury Cabinet Secretary John Mbadi has tabled a Sh18.9 billion mini-budget before the National Assembly to plug a widening revenue shortfall threatening government operations. The move comes as the country grapples with a historic Sh253 billion revenue gap recorded by April this year.
In his submission of Supplementary Budget 3, Mbadi cited an ordinary revenue shortfall of Sh195.3 billion and an additional Sh57.7 billion deficit in Appropriations in Aid (AIA). As of April, the government had only collected Sh2.2 trillion against a target of Sh2.5 trillion.
“The execution of the FY 2024-25 budget has faced challenges regarding resource-raising and emerging expenditure pressure,” Mbadi said, stressing the urgency of sustaining key services such as healthcare, education, infrastructure and security.
The supplementary funds will support a wide range of ministries and departments. Notably, the State Department for Social Protection gets the largest top-up—Sh12.5 billion—raising its budget to Sh47.8 billion. The Housing Department also received a Sh7.787 billion boost, mainly from development partners.
Other beneficiaries include the National Treasury (Sh5.85B), Water and Sanitation (Sh3.1B), National Intelligence Service (Sh3B), Higher Education (Sh3.47B), and the National Police Service (Sh944M). The offices of the President and Deputy President will also see increased allocations.
Mbadi disclosed that the Treasury has already spent Sh34 billion under Article 223 since the last mini-budget in March, citing unavoidable recurrent and development pressures. Some departments exceeded the legal 10% expenditure threshold, prompting a formal request to Parliament for approval under PFM regulations.
This new mini-budget comes just days before the start of the 2025/26 fiscal year, where the government aims to raise Sh3.3 trillion—an ambitious target under tight economic conditions.
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