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{
    "id": 1076646,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1076646/?format=api",
    "text_counter": 391,
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    "content": "quarter of 2021. If these risks materialise, the economic growth may be lower than the projected and this will further constrain the resource envelope. I just want to look at the key highlights of the Budget. The overall Budget of the Financial Year 2021/2022 is estimated to be Kshs3.66 trillion, if you look at it below the line or Kshs3.03 trillion. Of course, the Kshs600 billion difference is basically the provision of foreign debt redemption, with Recurrent Expenditure amounting to Kshs1.29 trillion and Development Expenditure at Kshs666.5 billion. In terms of the budget for the three arms of Government, the Budget for the Executive is estimated at Kshs1.895.14 trillion. Parliament gave a proposal of Kshs46.61 billion. However, of course, through consideration of the Committee, it was capped at Kshs37.88 billion and the Judiciary at Kshs17.92 billion. Hon. Deputy Speaker, the Committee observed that the overall Budget Estimates for the Financial Year 2021/2021 has slightly exceeded the approved 2021/2022 Budget Policy Statement ceiling by Kshs14.11 billion. This is mostly on account of increased Consolidated Fund Services spending which, of course, went to about Kshs20.83 billion. Parliament had also burst the ceiling in their recommendations with Kshs8.7 billion. For most of the other sectors, however, the net changes do not differ significantly from the approved Budget Policy Statement ceilings. Remember, it is this same House that approved the BPS and we said that we have to remain within the BPS ceilings. This is notable departure from the past where BPS ceilings were routinely flouted and the Budget increased in total disregard of the approved budget framework. Hon. Deputy Speaker, for the first time, we want to commend the National Treasury for this effort. With regard to the policy direction of the 2021/2022 Budget, the Committee notes that despite the Government's implementing of a Post-COVID-19 Economic Recovery Strategy, the key performance indicators and targets for the next financial year have not been clearly articulated and specified in the proposed Budget. This makes it difficult for the Government to monitor the projects/programmes being implemented under the Post-COVID-19 Economic Recovery Strategy. Indeed, there is no evidence that broad policy objectives particularly with regard to sustainable development goals have been factored into the Budget. Implementation of the SDGs is crucial as they are designed to enhance sustainable growth. Furthermore, this being the final year of implementing the Big Four Agenda, the Committee is concerned that the full benefit of the Big 4 Agenda may not be realized by 2022. It is, therefore, important for the strategies that will be implemented beyond 2022, notably the Fourth Medium Term Plan (MTP4) of the vision 2030, to include full completion of programmes and projects under the Big 4 Agenda. Hon. Deputy Speaker, it is also observed that the format of presentation of the Budget for the 2021/2022 Financial Year and the Medium Term is such that there is no effective budget challenge function taking place. Specifically, the review of the ongoing projects has not been provided thereby making the Budget simply incremental. The Committee notes that the poor management of capital projects has led to some projects being permanent on the Budget. The issue of pending bills and stalled projects continues to present a significant challenge in almost all the sectors of the Budget. For the most part, this is out of the outcome of poor planning, thus leading to budget cuts and expenditure adjustments during the supplementary budget process. No clear roadmap has been provided by the National Treasury on how effectively they can conclude those matters. Hon. Deputy Speaker, while the Committee appreciated the need to place certain key projects and programmes under seemingly high performing ministries, there is concern that there might be a major problem in the flow of Exchequer on a timely basis. It is noted that in the next The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}