The government has directed all state corporations and semi-autonomous agencies to spend only 25 per cent of last year’s approved recurrent budget.
The amounts directed by the government are expected to support all priority expenses over the period ending September 30.
The government has further stated that a moratorium has been issued to suspend all capital expenditures until the further directive is issued.
During this time, no expenditure will be undertaken unless the particular item is an ongoing project and is specifically approved by the National Treasury
According to the government, a review and rationalisation of the individual state corporation budget will be undertaken by a team set up by the National Treasury consisting of all respective ministries and the Presidency.
All corporations will be required to submit information to the director-general, Public Investment and Portfolio Management at the National Treasury on or before 31st July 2019 as per the template issued.
In the letter dated July 23, Head of Public Service Joseph Kinyua said it has seized with the alignment of financial year 2019/2020 budget towards the realisation of the Big Four agenda.