President John Pombe Magufuli speak at a past event.
What you need to know:
According to Estimates of Public Expenditure for consolidated fund services - a document submitted to the National Assembly – the State House budget will drop from Sh20.57 billion approved for the current financial year to Sh14.96 billion in next Budget.
Dodoma. President John Pombe Magufuli’s cost cutting measures will see recurrent expenditure of some ministries, departments and agencies, including the top officials of the State House, slashed in the next Budget .
According to Estimates of Public Expenditure for consolidated fund services - a document submitted to the National Assembly – the State House budget will drop from Sh20.57 billion approved for the current financial year to Sh14.96 billion in next Budget.
The 27 per cent reduction of the Ikulu expenditure estimates is one of the by-products of Dr Magufuli’s austerity measures, which include restrictions of foreign trips by public officials since late last year when he acsended to the top seat.
Reduction of expenses is also reflected in the envisaged slashing of costs related to rehabilitation and other civil works from Sh2.22 billion in the current budget to Sh372.72 million projected for the next Budget.
The expenditure for basic salaries of pensionable posts will also decrease from the current Sh4.35 billion to Sh3.51 billion while the budget for foreign training will drop from Sh347 million to Sh125 million, according to the document.
The budget for routine maintenance and repair of buildings will also drop from the current Sh1.46 billion to Sh800 million while that of in-country travel will drop from Sh1.36 billion to Sh802 million.
The cost-cutting policy will also affect other government institutions whose recurrent estimates will be slashed in the next financial year.
Areas that have been touched by expenditure reductions include allowances, hospitality supplies and services, travel, maintenance and training.
President’s Delivery Bureau
The recurrent budget for this institution which implements the Big Results Now initiative, will drop from the current Sh3.6 billion to Sh3397.2 million projected for the next budget year.
The money is allocated for rental expenses only and nothing has been allocated for aspects like allowances, maintenance, communications, training and travel in and outside the country.
Vice President’s Office
The recurrent expenditure for the Vice President’s office will drop from Sh31.46 billion approved for the current financial year to Sh9.41 billion next year.
