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{
    "id": 1173418,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1173418/?format=api",
    "text_counter": 163,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "We already know what we can get from taxation and collection from our tax revenues. The balance can only be financed realistically through borrowing. Hence, we know whatever happens, we must increase our budget. The alternative would be to look at the total budget and slash it across the board by Kshs600 billion. What will this do to the incoming administration that will be voted in by Kenyans in August 2022? This means that this House has passed a budget that is unrealistic and cannot finance the operations by Kshs600 billion. You can only vary the budget by 10 per cent. This means, at best, if they bring a supplementary budget, it will increase by something close to Kshs150 billion. We will have emasculated them by Kshs400 billion! The most important thing to remember is that we are in a very unique situation. We are doing a budget for an administration that is out there making its plans, but we must provide, at least, for the very basics. There are salaries and pensions to be paid, debt to be re-paid and the Consolidated Fund Services to be maintained. All these things have to be budgeted by this House. In addition, there is the ongoing development programme. If they get stuck, we will be in trouble. So, this is a very unique situation we are in, but it is not unique to Kenya only. This is because since the onset of COVID, we started seeing most countries getting into this situation, where capacity to raise revenue was constrained. The demand for extra expenditures was enhanced and nobody wants to think of debts. The original dilemma of taxes versus debts was now expanded to this other trilemma we are having of expanded spending. I know people have been talking about debt as if it is evil. It only becomes evil if you use it for the wrong reasons. For example, if you take your mortgage to buy a house and end up buying a car or a flat and use the balance to get a car. This is bad and cannot be excused. However, if you take your mortgage to buy a house, you are better off than the person who decided that because they hate debt, they will start accumulating a pile of stones every month until they have enough stones to build a house. We have seen this happen with people who fear debt. They buy a truck load of stones, sand, cement and a few iron sheets, but by the time they start constructing the house, the cement is 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."
}