Proposed Budget Cut for TSC.
The Teachers Service Commission (TSC) may face a significant budget reduction due to the National Treasury’s new austerity measures. These cuts respond to amendments proposed in the 2024 Finance Bill, potentially slashing funding across various government sectors. TSC stands to lose Ksh.18.9 billion, which will primarily impact the confirmation of Junior Secondary School (JSS) teachers.
The National Treasury has warned Parliament that if the amendments to the 2024 Finance Bill pass, it could create a Ksh.200 billion revenue shortfall in the 2024/2025 budget. Treasury Cabinet Secretary Njuguna Ndung’u communicated this in a letter dated June 19 to the National Assembly’s clerk. He detailed potential budget cuts across various government departments should the proposed tax amendments fail.
Ndung’u stressed that passing the Finance Bill 2024 as proposed would allow the National Assembly to proceed with the Appropriations Bill as originally planned. However, failing to approve the revenue-raising measures could lead to a substantial shortfall of around Ksh.200 billion.
TSC Budget Cut
Several key areas face significant budget cuts. The Department of Energy could lose Ksh.21.7 billion, impacting projects like last-mile connectivity. The Teachers Service Commission faces an Ksh.18.9 billion reduction for confirming Junior Secondary School teachers. The State Department of Higher Education also expects an Ksh.8.3 billion cut, affecting allocations for the Higher Education Loans Board.
Additionally, the National Government Constituencies Development Fund (NG-CDF) and the State Department for Roads are set for a Ksh.15 billion cut, impacting ongoing road projects. Other reductions include Ksh.5 billion each for the fertilizer subsidy program and county equitable share.
Further cuts include Ksh.451 million for the Executive Office of the President, Ksh.500 million for State House, Ksh.2 billion for the State Department for Internal Security, Ksh.4.6 billion for the State Department for ASALS & Regional and Northern Corridor Development, Ksh.7.7 billion for the Defence Ministry, and Ksh.1.8 billion for the State Department for Foreign Affairs. The Treasury plans to outline additional measures to achieve a total reduction of Ksh.21.6 billion by Friday.
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During the presentation of the 2024/25 budget on June 13, CS Ndung’u announced Kenya’s aim to raise Ksh.3.992 trillion. This includes Ksh.333.8 billion from external sources and Ksh.263.2 billion from the domestic market. The 2024 Finance Bill, currently under debate, aims to generate Ksh.346.7 billion through increased taxation. However, public opposition has led the Finance Committee to revise some proposed levies, including those on bread, motor vehicle circulation tax, and excise duty on vegetable cooking oil.
Meanwhile, the 2024 Appropriations Bill, introduced in Parliament and scheduled for consideration on Thursday, seeks to allocate Ksh.1.8 trillion from the Consolidated Fund to cover public expenditure during the fiscal year.
Implications for the Education Sector
The proposed budget cuts, especially the Ksh.18.9 billion reduction for TSC, could significantly affect the education sector. If the Finance Bill passes, these cuts might be necessary to balance the national budget. The impact on JSS teachers’ confirmation could be profound, potentially affecting the quality of education. As the debate continues, the government faces the challenge of balancing fiscal responsibility with essential services funding.
The outcome of this legislation will significantly influence Kenya’s financial landscape and public service delivery in the coming year. Stay tuned for further developments on this critical issue.
Proposed Budget Cut for TSC.
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