Having a deficit does not mean the fertiliser subsidy programme is not working- PS Harsama.
Speaking at the National Assembly Agriculture committee on Monday, PS Harsama confirmed that indeed the ministry has a deficit of Sh14.7Bn.
However, The State Department of Crop Development PS Kello Harsama refuted claims that the fertilizer subsidy program will not work because of that deficit.
He stated that the budgetary requirement for the rollout of the programme was Sh19.2 billion but the project was allocated only Sh4.5 billion from the Treasury.
Harsama told the committee,”This translates to a Sh14.7 billion resource gap that the state department now fears could hamper the programme. The government will not be able to provide 4.28 million bags of fertiliser, thus reduced production.”
While speaking to the media, The principal Secretary highlighted that it is normal for any government program to have a deficit.
He highlighted that they have means to bridge the gap and Kenyans should not be worried that the subsidized fertilizer will stop.
He stated,”There is no government in the world which does not operate with a deficit. Even the biggest economies like the US, Japan and Germany all have fiscal deficits. Having a deficit does not mean the fertiliser subsidy programme is incapacitated as reported.”
“We know how to seal the fiscal gaps and there is nothing wrong in expressing a deficit. Even if we told Parliament that we have a deficit, this does not mean that the fertiliser subsidy programme will end or be interfered with,” he added.