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{
    "id": 1215495,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1215495/?format=api",
    "text_counter": 304,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "e) The proposed division of revenue raised nationally, between the National Government and county governments. Mr. Speaker, Sir, in compliance with the provisions of Standing Order No.186(6), the Committee proceeded to undertake consultative processes by inviting key stakeholders, including various Standing Committees of this Senate, to give their input. Among the key stakeholders we have invited are; the National Treasury and Economic Planning; the Commission on Revenue Allocation (CRA); the Council of Governors (CoG); the Institute of Certified Public Accountants of Kenya (ICPAK); International Budget Partnership-Kenya Chapter; Institute of Economic Affairs (IEA); and, The Institute for Social Accountability (ISA). Mr. Speaker, Sir, the 2023 Budget Policy Statement, under the provisions on the macro-fiscal framework, it is projected that the economy will grow at 6.1 per cent in 2023. This growth will be supported by private sector growth, recovery in agriculture and targeted implementation by Government of various sectors including the Hustler Fund. This is expected to increase access to private sector financing. From the expenditure perspective, private consumption is expected to support aggregate demand, ongoing labour market recovery, improved consumer confidence and resilient remittances from abroad. Mr. Speaker, Sir, the outlook of key macro-economic variables has also been reviewed, including inflation which is projected to average about 5.8 per cent in the Financial Year 2023/2024, supported by a tight monetary policy stance which is expected to anchor inflation expectations. With regard to the exchange rate, the Kenya Shilling has weakened significantly against the US dollar but remains stable; supported by increased remittances from Kenyans in the diaspora, adequate foreign exchange reserves and improved exports receipts are also cushioning the Kenya Shilling a little bit. Mr. Speaker, Sir, it is reported that as at November 2022, exports grew by 12.4 per cent driven by increased receipts from tea and manufactured goods across the closer regional neighbours but horticulture declined. It was also noted that imports increased by 11.7 per cent in the same period, mainly due to increased imports of oil and other intermediate goods. Mr. Speaker, Sir, regarding the fiscal framework, the National Treasury projects ordinary revenues collected to stand at Kshs2.571 trillion, against a recurrent and development expenditure of Kshs2.459 trillion and Kshs744.2 billion respectively. To this extent, there is a projected fiscal deficit of Kshs720 billion in the Financial Year 2023/2024 translating to 4.4 per cent of the Gross Domestic Product (GDP). To meet this deficit, the National Treasury proposes to borrow Kshs521.5 billion from the domestic market and net foreign financing of Kshs198.6 billion in the Financial Year 2023/2024. This additional foreign debt is expected to increase future statutory expenditures. Mr. Speaker, Sir, with regard to the Division of Revenue where this Senate needs to be extremely concerned with, in the Financial Year 2023/2024, the National Treasury"
}