Govt projects stall as funds are unused
29 November 2013, 13:35
Nairobi - Reports suggest that local government ministries have failed to spend almost 40 percent of the budget fund this year.
According to the Budget Review and Outlook Paper published this week, government expenditure by August 2013 was KES 150.5 billion against a set target of KES 229.4 billion.
“The slow absorption of funds is as a result of delays due to lengthy procurement procedures that have to be followed for implementation of projects,” the National Treasury said in the report.
“We therefore expect higher absorption rate in the coming months.”
Last year, ministries returned over KES 101 billion to the Treasury for the financial year ending June 30 in unused development funds.
The low absorption of funds has become a common feature of State spending, undermining the country’s economic prospects.
Transfer to the counties was equally below target, as all the counties put in place their structures and took up functions as gazetted by the Transition Authority to implement projects using the allocated resources.
Infrastructural projects have been in focus, with the two levels of governments failing to agree on where keys projects would source funds.
– CAJ News