News Column

Govt Urged to Cut Spending, Increase Investments

February 13, 2014

Anthony Langat

THE Institute of Economic Affairs has advised government work with the Salaries and Remuneration Commission to cut the wage bill and increase investments.

"We need to agree with the Controller of Budget, salaries and remuneration commission and treasury on what the implications of a large wage bill are and the need to constrain our wage-bill," said Jason Lakin, an IEA executive.

Lakin added that the two levels of government are spending "too much" money on remuneration and less on other functions of government that were equally important, such as investment.

The agreements that the concerned parties need to agree on, according to Lakin, are what could be done to control the wage-bill and what it mean for the two levels of government.

County governments have inherited wage-bills from the national government through devolution and have gone ahead to recruit more personnel and therefore increasing the wage-bill in the county governments.

"We need to know what it costs to run the two levels of government and then we can start to figure out where we can make cuts that wont undermine provision of services t the people but will allow us to reduce the amount of our budget that goes to wages," Lakin said.

The county governments were allocated a total of Sh 198,7 billion and IEA says that a large fraction of that amount was spent in payment of wages.

IEA is a Public Policy think tank based in Nairobi. It seeks to promote pluralism of ideas through open, active and informed debate on public policy issues.

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Source: AllAfrica

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