Treasury directs state corporations to submit rationalized budgets

National Treasury has directed state corporations to re-submit their 2024–2025 recurrent expenditure budget, which has been rationalized to a level that is not more than 70 percent of the approved 2023–2024 budget. 

Treasury Cabinet Secretary Njuguna Ndung’u stated that the recurrent expenditure budget should be re-submitted through the Government Investments Management Information System (GIMIS) by April 2, 2024. 

“Every State Corporation should re-submit its 2024/2025 FY recurrent expenditure budget. All submitted 2024/2025 FY budgets by State Corporations have been reverted to respective Corporations for rationalization and should be re-submitted through GIMIS by April 2 2024,” noted Njuguna CS Treasury.

The Treasury, under its new policy measures to enhance state corporations’ revenue generation and expenditure rationalization, further directed state corporations not to fund operations or purchase capital items for Ministries, Departments, State Corporations, and Agencies (MDA). 

“No State Corporation shall pay for individual or corporate club membership fee or annual subscriptions with effect from the date of this circular.” 

CS Njuguna said all board expenses, including payment of sitting allowances, daily subsistence, and domestic and foreign travel, should not be expensed from the approved board expenses budget. 

“It is irregular for any State Corporation to expense any Board activity to other Votes other than from the approved Board expenses budget,” he said. 

State corporations were also urged not to implement new projects without fresh written approval from the Treasury. 

On March 18, 2024, the government issued a directive demanding that state corporations suspend and immediately cease the procurement, printing, and production of corporate wear, including T-shirts, shirts, tracksuits, and any other branded items. 

The state embarked on its fiscal consolidation efforts geared towards enhancing revenues and expenditure control as well as ensuring adequate resources for the provision of critical government services.

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