NAIROBI, June 7 (Reuters) – Kenya’s parliament has approved government spending of 4.00 trillion shillings ($31.01 billion) in the fiscal year that starts in July, up from the 3.75 trillion shillings it approved last June for the current fiscal year.

The finance ministry is due to present the final version of the budget next week, with slight variations expected to the proposed amount of spending.

“This house … will be approving a budget … of 4.006 trillion shillings,” Ndindi Nyoro, chairperson of parliament’s Budget and Appropriations Committee, said on Thursday ahead of the approval.

The 2024/25 budget will be presented alongside a highly contested piece of draft legislation, the Finance Bill 2024.

The bill proposes tax changes aimed at increasing revenue collection, but critics say it could cripple sectors ranging from financial services and manufacturing to retail.

President William Ruto defends the tax measures as necessary to curb the country’s reliance on borrowing and fund spending priorities.

($1 = 129.0000 Kenyan shillings)

(Reporting by George Obulutsa; Editing by Alexander Winning)