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{
    "id": 804873,
    "url": "http://info.mzalendo.com/api/v0.1/hansard/entries/804873/?format=api",
    "text_counter": 151,
    "type": "speech",
    "speaker_name": "Mr. Henry Rotich",
    "speaker_title": "The Cabinet Secretary for the National Treasury",
    "speaker": {
        "id": 13142,
        "legal_name": "Henry Rotich",
        "slug": "henry-rotich"
    },
    "content": "Under this fiscal consolidation plan, we project the fiscal deficit to narrow to 5.7 per cent of GDP in the Financial Year 2018/19 from the estimated 7.2 per cent of GDP in the Financial Year 2017/18 and further to around three per cent of GDP by Financial Year 2021/22. As such, this will help stabilise the Net Present Value (NPV) of debt to GDP ratio at below 50 per cent, which is well below the 74 per cent threshold considered to signal an unsustainable debt position. Strengthening revenues through tax policy measures is at the core of achieving the fiscal targets. Other revenue administrative measures are also key. I will outline some of these measures shortly. With revenue enhancement measures, we project revenues to rise by 17.5 per cent to Kshs1, 949.2 billion (equivalent to 20.0 per cent of GDP) in the Financial Year 2018/19 from the estimated Kshs1,659.6 billion collected this financial year. We will continue to strengthen expenditure control and improve the efficiency of public spending through public financial management reforms in order to free fiscal space for priority social and economic projects. In particular, we plan to address the challenges we face in project identification, preparation and execution, which have been responsible for delays, cost overruns and pending bills. Towards this end, we have established a Public Investment and Management Unit at the National Treasury to improve the management and budgeting of public development projects. This unit will ensure that all the projects in the budget are appraised before they are committed. This will improve efficiency of our public investment, streamline spending and reduce waste. This year will witness the implementation of the second phase of the salary review following the 2017 job evaluation by the Salaries and Remuneration Commissions (SRC). We commit to stay on this path so that we can contain the public-sector wage bill. Given our expenditure containment measures, we project the total expenditure of Kshs2,556.6 billion, equivalent to 26.3 per cent of GDP in the Financial Year 2018/19. Of this, recurrent expenditure will amount to Kshs1,550.0 billion, which is equivalent to 15.9 per cent of GDP. Development expenditure is projected at Kshs625 billion and it is equivalent to 6.4 per cent of GDP). Transfers to county governments will amount to Kshs376.4 billion. It is equivalent to 3.9 per cent of GDP. The deficit of Kshs558.9 billion, equivalent to 5.7 per cent of GDP, will be financed by net external financing amounting to Kshs287 billion, which is equivalent to 3 per cent of GDP. Other domestic financing will amount to Kshs271.9 billion, which is equivalent to 2.8 per cent of GDP. We will continue to diversify the sources of funding our development budget over the medium-term by maintaining a presence in the international capital markets. We will seek to maximise our access to official development assistance on concessional terms while limiting use of non-concessional and commercial external borrowing to development projects with high financial and economic returns. As you are aware, this House has reviewed the 2018/19 Budget Estimates that I submitted on 26th April 2018. I want to thank the BAC and all the departmental committees for interrogating the Estimates. Based on the BAC Report adopted by the House, the Committee of Supply has now approved the Estimates. That paves way for finalisation of the Appropriation Bill. Today, I submit the Finance Bill, 2018, which contains the taxation and financial proposals, along with other documents for consideration and approval by this august House. Let me turn to the various tax measures that I intend to introduce through the The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}