Budget Implementation Review First Quarter2013/ 2014

Publisher	Controller of Budget, Kenya
Year of Publication	2014
Category	Report Budget & Fiscal Plans
County	All/General
Description	The Controller of Budget is mandated by the Constitution under Article 228(6), to submit to each house of Parliament a report on the implementation of budgets of the national and county governments every four months. The FY2013/14 started on a low note with MDAs facing delays in the release of funds from the National Treasury which was occasioned by the re-organization of the government structure that saw the number of ministries reduced from forty two to eighteen, exacerbated by the delay in appointment of accounting officers in the relevant ministries and opening of bank accounts for the restructured ministries. Additionally, counties did not receive their allocations on time due to the delay in the enactment of the County Allocation of Revenue Act, 2013 (CARA) which became effective on 26th August 2013, two months into the first quarter and some delayed in submitting their balanced budgets. According to figures from the Kenya National Bureau of Statistics, Gross Domestic Product (GDP) grew by 4.3 per cent against a target of 5.8 per cent during the second quarter of 2013. The economic growth for the year 2013 is mainly supported by a strong expansion of activities in the Electricity and Water sector; Financial Intermediation, Agriculture and Forestry as well as the Manufacturing sectors. In the period July to September 2013, the inflation rate averaged 7.0 per cent compared to 4.36 per cent recorded at the end of June 2013 well over the targeted 5 per cent. This inflationary pressure is attributed to the implementation of the Value Added Tax Act and climatic factors affecting supply of common food crops which caused an upward increase of food index. The Kenya shilling weakened slightly against the major world currencies for this period, July to September 2013. The Shilling exchanged at a rate of Kshs. 87.30 against the US Dollar, a slight depreciation from Kshs. 84.60 recorded by the end of June 2013 and depreciated from Kshs. 130.00 to Kshs.135.3 to the Sterling Pound.
Tags	Public Finance
	Download