Parliamentary Budget Office has piled pressure on President William Ruto to reconsider his directive on cutting expenditure on government ministries, adding that it could be counterproductive in the long run.
According to the PBO's analysis, the move could end up slowing activities in ministries and departments and ultimately lead to lower input as witnessed in past attempts.
The move by Ruto to slash the benefits was aimed at collecting Ksh300 billion to inject into the economy.
The directive leads to budget cuts on items such as hospitality, printing, and domestic and foreign travel.
According to the office, Ruto's directive requires a delicate balancing act so as not to disrupt business operations.
Recommendations
The Budget Office advised the Kenya Kwanza administration to explore other areas in a bid to raise more cash and boost the economy.
One of the areas the Budget Office proposed the government tap into is the privatisation of some of the 248 state corporations. This is projected to raise to a total of Ksh30 billion annually.
However, for the project to be achieved, the government would be required to come up with a privatisation policy that addresses recurring challenges faced by the agencies.
To further the privatisation agenda, PBO suggested prioritisation of capital-intensive projects that have the ability to generate more revenue.
Another sector identified by the Budget Office is agriculture.
PBO proposed the injection of Ksh15 billion for the expansion of the agricultural input subsidy programme and the allocation of Ksh1.5 billion for the provision of extension services.
The Office also advocated for the provision of Ksh200 million for the procurement of mobile grain driers at the community level and for counties to annually allocate Ksh50 million in small-scale irrigation infrastructure.
Others included maximising the already existing irrigation infrastructure to enhance food production and provision of Ksh3 billion as a subsidized loan for the production of key food staples required for the food reserves.
Another area of focus is the manufacturing industry.
The Office proposed channeling funds to viable projects to curb the habit of ventures becoming white elephant projects.
In addition, Ruto was advised to tap into the special economic zones and industrial estates in a bid to provide employment opportunities.
The Budget Office warned that the Kenya Kwanza administration ought to take stringent measures to revive the economy or else risk the country plunging into debt distress.
