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{
    "id": 1258821,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1258821/?format=api",
    "text_counter": 942,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "projections. Budgets are usually proposals. They are never cast in stone. This is because all the things contained in a budget, especially on the revenue side, are variables and not absolutes. That is why it is always important to align our inspirations with the amount of revenue that we are likely to collect. First of all, I thank all the Departmental Committee Chairs and their Members, who considered these Estimates in a record time. Some of then worked over the weekend. I also thank the Budget and Appropriations Committee Members who have been working over the weekend upto yesterday to be able to finalise the Report that we are now debating. The amount of money that is involved in these second Supplementary Estimates is a net reduction of Ksh24 billion. There is a slight increment of Ksh9 billion with regard to Recurrent Expenditure. There is also a reduction of Ksh34 billion with regard to Development Expenditure. In the same Report, we are considering the funds that have been expended under Article 223 of the Constitution. This procedure applies to expenditures incurred on matters that are of emergency in nature, which could not wait for the next Budget cycle. I take this opportunity to laud the National Treasury and the current administration in this regard. I do not know if I am clear, I am hearing an echo. Hon. Speaker, I laud the National Treasury and the current administration because we have seen a gross reduction with regard to consideration of expenditure already done under Article 223 of the Constitution. We have seen in the consideration of the expenditure under Article 223 of the Constitution that it is all justifiable. We have departed from where we were before whereby the Article would be misused to fund expenditures that could not meet the threshold to be provided for under Article 223. First of all, I want to explain the reduction in Capital Expenditure and the increment in Recurrent Expenditure. Talking about Recurrent Expenditure, there is some Recurrent Expenditure that has a capital element in it. For example, part of the expenditure under Article 223 of the Constitution are monies we expended on hiring and training of Junior Secondary Schools (JSS) teachers. As much as this is a Recurrent Expenditure, it is capital investment in nature because it is capitalising our education sector in terms of hiring and training of human resource. It is an investment that has gone into polishing our labour, a factor of production. Therefore, when we see an increment in Recurrent Expenditure, we are not increasing a component that is known more for wasteful expenditure but a component that is going to render service to the people of Kenya. When it comes to reduction in Capital Expenditure, I want to assure Members that we are not reducing monies from any project. What we are doing is to consider absorption, especially with regard to development partners-funded projects. As the majority of the Members know, there is usually a big challenge when it comes to absorption rates, especially when it comes to donor-funded projects because of the processes involved in accessing the funds. That is the reason for that reduction in Capital Expenditure. Hon. Speaker, there are a few things I want to highlight - things we noted in the Budget and Appropriations Committee. As we were considering these Estimates we, first of all, segregated the sources of funds to enable us to zoom in properly. In terms of the affected Votes, we first of all zoomed into what is an increment in expenditure which has an element of Appropriations-in-Aid. We also segregated whatever is funded by the Government of Kenya, especially Government financing in the financial year that will be lapsing on 30th June, 2023. We also segregated those projects which were to be externally funded in order for us to make the right decisions on each and every Vote that was affected. Some of the findings we saw will guide the policy of this House now and in the future. Some of the findings we have seen are that there is usually a gross under-estimation of the budgeting of Appropriations in Aid (A-in-A). A majority of the Government of Kenya (GoK) enterprises, Semi-Autonomous Government Agencies (SAGAs), and institutions under- 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."
}