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{
    "id": 1077263,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077263/?format=api",
    "text_counter": 123,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "total revenue is projected at Kshs2.04 trillion, equivalent to 16.4 per cent of GDP, an increase in nominal terms from Kshs1.84 trillion in the Financial Year 2020/2021. Ordinary revenue in the budget is projected at Kshs1.78 trillion, equivalent to 14.3 per cent of GDP. The total expenditures in the Financial Year 2021/2022 Budget are projected at Kshs3.03 trillion, which is equivalent to 24.5 per cent of GDP from Kshs2.89 trillion, equivalent to 25.8 per cent of GDP in the Financial Year 2021/2022 Budget. Recurrent Expenditure will amount to Kshs2 trillion or 16.2 per cent of GDP. On the other hand, Development Expenditure including foreign financed projects, allocation to Contingencies Fund and conditional transfers to county governments are projected at Kshs669.6 billion. This funding is expected to accelerate completion of on-going critical infrastructure projects in the country. The expenditures I have outlined in this Budget are consistent with those approved in the 2021 Budget Policy Statement. Given the performance of revenue and the available level of funding from our development partners, it is, indeed, necessary that we strictly adhere to the expenditure ceilings as presented so as to manage and stabilise public debt. Given the projected revenues and grants against the projected expenditures, the fiscal deficit for the Financial Year 2021/2022 Budget is projected at Kshs929.7 billion, which is equivalent to 7.5 per cent of GDP. This fiscal deficit is lower than the Kshs976.2 billion, equivalent to 8.7 per cent of GDP in the Financial Year 2021/2022 Budget. The fiscal deficit in Financial Year 2021/2022 Budget will be financed through net external financing of Kshs271.2 billion, which is equivalent to 2.2 per cent of GDP and net domestic financing of Kshs658.5 billion, which is equivalent to 5.3 per cent of GDP. Our Medium-Term Consolidation Policy aims at reducing fiscal deficit progressively to Kshs613.8 billion, which is equivalent to 3.6 per cent of GDP by Financial Year 2024/2025. In this respect, we shall closely monitor the impact of COVID-19 to the economy and accordingly adjust the fiscal plan including tax measures to ensure that our development agenda remains sustainably funded. We shall carefully do this while limiting in-year adjustments of the budget for new projects except those of emergency nature. This will enhance certainty in the budget process and improve the implementation of Government programmes and projects while adhering to the fiscal consolidation plan. Hon. Speaker, Kenya’s public debt remains sustainable, but the debt carrying capacity has however declined. Financing of the fiscal deficit will continue to be strictly guided by the Debt and Borrowing Policy and the annual Medium-Term Debt Strategy. The Government is implementing reforms to strengthen the institutional arrangement of public debt management by aligning the operations of the Public Debt Management Office to the Public Finance Management (PFM) Act. In this respect, decisions on the day-to-day management and operations of public debt management shall be undertaken by the Public Debt Management Office to enhance efficiency, strengthen accountability and transparency. In addition, during this calendar year, we have scheduled a set of debt management operations to lower cost and risk in our public debt portfolio to improve on the country’s debt sustainability indicators and sovereign credit rating. I look forward for support of the august House for the amendment of public debt ceiling set in the Public Finance Management Act to enable the implementation of debt management operations including financing of the fiscal deficit. 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."
}