Budget process under scrutiny as current practices deemed unconstitutional

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NAIROBI, Kenya, Sep 19 – The Controller of Budget Magaret Nyakang’o has raised alarm over unconstitutionality of the budget making process.

Nyakang’o highlighted the issue while she appeared before the Constitution Implementation Oversight Committee.

The Controller of Budget told the committee chaired by Githunguri Member of Parliament Gathoni Wamuchomba that Article 221 of the Constitution, which mandates transparency in both revenue estimates and expenditures has been violated.

Nyakang’o acknowledged the issue, explaining that her office had no role in correcting these discrepancies.

“My office has flagged this error in the budget-making process, where Revenue Estimates are not clearly presented, yet according to the Constitution, both the revenue estimates and expenditure should be presented to Parliament. It is unconstitutional to bypass one or the other” she said.

MP Wamuchomba termed it unfortunate, questioning why both levels of government have been bypassing the law in declaring revenue estimates.

“We have been running an unconstitutional budget-making process. We’re only seeing expenditures, but where are the revenue estimates? This deviation from the Constitution is unacceptable,” she said.

MPs canvassed the crippling financial challenges that have faced
independent offices like the Controller of Budget.

Despite their constitutional mandate, many of these offices, including the Ethics and Anti-Corruption Commission (EACC) and National Gender and Equality Commission (NGEC) among others, have face liquidity issues which have affected their mandate.

“Only three independent offices; Judiciary, PSC, and TSC, have had budget increases. The rest, including key oversight bodies, have seen reductions,”Wamuchomba stressed.

Nyakang’o disclosed that the pension fund is suffering from a shortfall of Ksh 23.47 billion, in part due to public debt.

“We can’t afford to underfund pensioners. Their entitlements are being affected by the increasing public debt, but my office doesn’t have the mandate to control or rectify this,” she said.

The Controller of Budget noted that the ineffectiveness of the independent office is due to lack of enforcement powers.

Further, the office’s inability to oversee all aspects of the budget, including grants and receipts, was cited as a major weakness.

“We are barred from reporting on many budget aspects, including economic development, grants, and loans. Section 94 of the COB Act needs to be amended,” Nyakang’o emphasized.

Nambale MP Geoffrey Mulanya echoed the need for reforms, especially when the national and county government divert approved funds by the Controller of Budget.

“Why do some funds simply disappear from accounts? If COB isn’t monitoring levies and other funds, how can we guarantee transparency?” he questioned.

The house team now seeks to expedite for legislative amendments and proper funding mechanisms for the independent offices in order to uphold constitutional requirements.

Source: capitalfm