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{
    "id": 1134084,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1134084/?format=api",
    "text_counter": 64,
    "type": "speech",
    "speaker_name": "Sen. Kibiru",
    "speaker_title": "",
    "speaker": {
        "id": 13196,
        "legal_name": "Charles Reubenson Kibiru",
        "slug": "charles-reubenson-kibiru"
    },
    "content": "The theme for the BPS 2022 is “Accelerating Economic Recovery for Improved Livelihood.” The policies in the BPS have also been anchored on the Medium-Term Plan III of the Vision 2030 as prioritized in the Big Four Agenda and the Third Economic Stimulus Programme (ESP). The BPS is the most critical document in the budget process. This is because it is the basis upon which the Division of Revenue Bill, the County Allocation of Revenue Bill and the Budget Estimates for the subsequent year and over the medium term, are prepared. The BPS indicates that the total Budget is expected to grow from Kshs3.03 trillion in the current Financial Year 2021/2022 to Kshs3.309 trillion in the Financial Year 2022/2023, representing a growth of 9.2 per cent. Concerning revenue allocation, the allocation the county governments is proposed to remain at Kshs370 billion and that is zero per cent growth. The allocation to the Consolidated Funds Service (CFS) is proposed to have the largest growth of 20.3 per cent. It is important to note that this accounts to over 26 per cent of the total Budget and is slowly throwing out other expenditures. The national Government is expected to have a growth of 6.8 per cent. On economic growth, it is indicated that the economy grew by 5.4 per cent in the first half of 2021 boosted by recovery in sectors such as education, transport, manufacturing, accommodation and restaurants or hospitality industry. However, this growth is partially attributed to the base effect. That was negative growth in 2020. The National Treasury projects that Kenya’s economy will grow by 6 per cent in 2021 and 5.8 per cent in 2022 strengthened by the ongoing implementation of the strategic priorities under the Big Four Agenda and initiatives under the Economic Recovery Strategy. Ordinary revenue projection for Financial Year 2022/2023 is Kshs2.141 trillion. This is, however, based on the planned reforms in tax administration and revenue collection. The projected ordinary revenue for the ongoing financial year is Kshs1.8 trillion. This is 18.94 per cent growth rate. Based on the projected ordinary revenue growth, the National Treasury is targeting to reduce the fiscal deficit, including grants, from 8.2 per cent in the Financial Year 2021/2022 to 6.0 per cent in the Financial Year 2022/2023 and 3.2 per cent in the medium term. However, it is noteworthy that without concrete policies aimed at enhancing revenue collection, the projected fiscal deficit over the medium-term may not be achieved. Mr. Speaker, Sir, that was an observation of most of the stakeholders that we met. The overall inflation rate has remained modest and within the target range increasing from 5.3 per cent in November, 2020, to 5.8 per cent in November, 2021. Fuel inflation was on an upward trajectory in 2020 and stood at 11.1 per cent in March 2021. It declined to 3.8 per cent in November 2021 as a result of lower international crude oil prices and, partly, due to the Energy and Petroleum Regulatory Authority (EPRA) fuel subsidy. Food inflation was at 9.9 per cent just short of 10 per cent in November 2021 owing to increase in the prices of various food commodities."
}