We should never borrow to finance recurrent expenditure- President Ruto on cutting the budget.
President Ruto has stated the plan to cut the budget down by 300M. According to the memo, the treasury was ordered to cut the training budget in all state departments departments.
The memo read,”As you are aware, during the opening of the 13th Parliament on Thursday, September 29, the President directed the Treasury to work with ministries to realise savings of Ksh300 billion in the financial year 2022/23 budget.”
“The purpose of this memo is to request you to inform the officers under your purview that all training was suspended and budget was frozen till further notice,” the memo added.
However, Unions such as KMPDU have complained saying they canot run efficiently if the training budget is frozen.
However, president Ruto has defended the move saying the country can not move forward through debt.
He said,”We should never borrow to finance recurrent expenditure. It is not right, prudent or sustainable. It is simply wrong. We must bring ourselves and our country to sanity.”
“To this end, I have instructed Treasury to work with Ministries to find at least Ksh.300 billion in this year’s budget so that we can remove it because the market cannot sustain the kind of borrowing we are doing as government,” he added.