Discuss comprehensively with relevant examples Kenya’s budget making process.
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.
In summary, the purpose of budgeting is to:
• Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out.
• Enable the actual financial operation of the business to be measured against the forecast.
• Establish the cost constraint for a project program, or operation.
The government budget is a set of procedures by which the government rations resources among claimants and control the amount each claimant spends.
After the expenditure analysis in October./December the sector working groups review ongoing programs, indicate budget requirements and creates the medium term expenditure framework in January/March. 3. Sharing resources. Once the broad aggregates have been agreed, the available resources are shared between constitutional obligations that have first call on revenue since they represent statutory commitments and discretionary expenditure that is allocated to agreed ministries. E.g. The Ministry of Health is on of the crucial ministries in the Kenyan government as good affordable healthcare in part of the backbone of any country. In the budget 2004/05 the development expenditure allocation increased by