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"content": "does not need roads to do business? Even the person who is selling bananas will still need roads to do business. Mr. Temporary Deputy Chairman, Sir, this financial year, the Minister has tried to put more resources to the development expenditure. There has been an increase of Kshs68 billion as compared to Kshs40 billion which was the increase on the Recurrent Expenditure. The other issue that we need to ask the Minister to make sure that it is addressed is that the bulk of the amounts that come to the Development Expenditure need to go to the productive sector; there is a distinction between Development Expenditure and productive sector. Government definition of Development Expenditure even includes houses for District Commissioners and government staff, but the productive sector involves provision of roads, energy and water. We expect more resources to go to productive sector. Secondly, I have heard many criticizing this Budget, that it is too ambitious and that we are probably going to borrow a lot. There is no country in the world that will ever develop without borrowing. Debt is inevitable. The only thing that we need to ask the Government to make sure that it enforces is that the money that we borrow needs to go to the productive sector and we avoid wastage. If wastage is avoided, and we put the money we borrow to the productive sector, we will achieve the desired economic growth. Mr. Temporary Deputy Chairman, Sir, the only difficulty I have with this Budget is that we are too ambitious in terms of how much we expect to raise from taxes. As things stand, in the last financial year, we failed to achieve the targeted revenue collection. This year, we have even projected a higher revenue collection. We have based this on various tax reform measures, which have not been implemented, and some require legislation. How sure are we that those tax reform measures will enable us to realize the targeted revenue from taxes? Chances are that if we fail to realize this revenue, and there is a shortfall, then the Development Expenditure is the one which will suffer, because normally, Recurrent Expenditure is never deferred. The Government will spend on Recurrent Expenditure, but the Development Expenditure will be affected. So, the Minister must ensure that the various legislations that are supposed to be brought before this House are brought in good time, so that they are debated and passed in good time, so that they are implemented to help us achieve the desired economic growth. Mr. Temporary Deputy Chairman, Sir, I also want to add on what others have said about the Value Added Tax. The Value Added Tax has been affecting business in this country. The delay in refunds is reducing tax compliance. The delay in the refunds is very costly to businesses, because the money that is locked up at the KRA from the businesses reduces cash flow of various business people. It is important that the Minister moves with speed, as Ms. Abdallah, has said. I think there is need to ensure that KRA refunds the Value Added Tax in good time. If possible, a policy should be devised to make sure that there is offsetting of the VAT payable to businesses against the VAT due, so that these business people are not affected. Mr. Temporary Deputy Chairman, Sir, lastly on the same note, I want to put it that I still believe that, as a country, we have not eliminated corruption in terms of revenue collection by the KRA. There are still pilferages. I do believe that, as a country"
}