President Ruto Announces Elimination of Budgetary Allocation for Spouses of Top Government Officials

In a significant move towards fiscal austerity, President William Ruto has declared that his administration will eliminate the budgetary allocations for the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary. This announcement was made during a comprehensive address on Friday, where the President outlined a series of measures aimed at implementing and enhancing austerity within the government.

Eliminating Budget Allocations for Spouses’ Offices

President Ruto stated that the budget allocations for the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary would be removed moving forward. This decision is part of a broader effort to align government expenditures with the financial implications of withdrawing the Finance Bill, 2024.

“Budget lines providing for the operations of the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary shall be removed,” the President announced during his address to the nation.

Reduction in Confidential Budgets

Further emphasizing the government’s commitment to austerity, President Ruto announced that the budgetary provisions for confidential budgets in various executive offices would be reduced by 50%. This includes the office of the President, which encompasses the budget for renovations across the government.

Suspension of Non-Essential Travel and Public Contributions

In addition to budget cuts, the President has suspended all non-essential travel by state and public officers. Furthermore, he declared that no state officer or public servant shall participate in public contributions or Harambees. The Attorney General has been directed to prepare and submit legislation to this effect and to develop a mechanism for structured and transparent contributions for public, charitable, and philanthropic purposes.

Proposed Budget Cuts and Additional Borrowing

President Ruto announced that the government has proposed a budget cut of Sh177 billion to the National Assembly and will borrow the difference to strike a middle ground. This additional borrowing is expected to increase the fiscal deficit from 3.3% to 4.6%, and it will be used to ensure the continued funding of critical government services.

Funding for Essential Services

The additional borrowing will support several key initiatives, including:

• Hiring Junior Secondary School teachers and medical internsFunding the milk stabilization program for dairy farmersReviving stalled road projectsRetaining the fertilizer subsidy programSettling debts owed to farmers in the coffee subsectorCapitalizing the Coffee Cherry FundEnabling public sector-owned sugar mills to pay outstanding debts to sugarcane farmers providing additional funding for the new higher education funding modelSettling arrears owed to counties

“In keeping with the enhanced austerity measures we have committed to implementing, we aim to align government expenditures with the budgetary implications of the withdrawal of the Finance Bill, 2024,” President Ruto reiterated.

Conclusion

President Ruto’s decisive actions reflect a strong commitment to fiscal responsibility and efficient governance. By eliminating unnecessary budgetary allocations and reducing non-essential expenditures, the government aims to redirect funds to critical areas and ensure sustainable economic growth.