President Ruto, who was addressing the nation today at State House, openly revealed that the borrowed money will be used to fund some of the government’s critical services.
President Ruto said that he will be proposing a budget cut of 177 billion to the National Assembly and borrowing the difference.
“Whatever we are going to borrow, the difference will increase our physical deficit from what I intended to be 3.3% of our GDP; it will now go up to 4.6% of our GDP, still lower than last year, and will be used to fund some of our critical government services.” President Ruto said.
Below are the things the borrowed money will be used for:
Hiring of junior secondary school teachers and medical interns.
Funding the milk stabilization program for the daily farmers.
Reviving stalled road programs that are in many parts of Kenya.
Retaining the fertilizer subsidy program has helped manage the cost of living.
Settling debt owed to farmers in the coffee sector.
Capitalizing on the coffee cherry fund to support farmers in the sector.
Enabling public-owned sugar mills to pay outstanding debts to sugarcane farmers for their deliveries.
Additional funding for higher education was planned, and a new funding model will receive additional funding.
Settling arrears owed to counties for NGCDF and pensions