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{
    "id": 1266683,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1266683/?format=api",
    "text_counter": 283,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": "General and the Central Bank of Kenya (CBK) for providing critical information in the process of reviewing the Consolidated Fund Service (CFS) expenditures. The offices of Controller of Budget and Auditor-General have over time proven to be very critical in promoting accountability and transparency in relation to CFS expenditures and have highlighted gaps which the Committee is working on. It is important to remind Members of this House that the CFS expenditures are excluded from the Appropriation Act pursuant to Article 221(7) of the Constitution. This is because the expenditures are a direct charge on the Consolidated Fund, thus do not require appropriation. This seems to be an unfamiliar aspect of expenditure, in that expenditures can be undertaken without appropriation by the House. In brief, unlike other expenditures which we appropriate as a House, CFS expenditures are not appropriated by this House. They are a direct charge on the Consolidated Fund. For the benefit of Members, CFS expenditures comprise the following: 1. Expenditures required to service the public stock of debt, being interest payments and redemption, that is, maturity of debt expenditures. 2. Pension expenditures. 3. Salaries for constitutional and independent offices. 4. Expenditures related to guaranteed debt. For the FY 2023/2024, CFS expenditures are the largest in terms of percentage at a value of Ksh1.84 trillion, more than the recurrent expenditures of the current Government which amount to Ksh1.56 trillion, and development expenditure which is worth Ksh807.64 billion, as approved by this House. The CFS expenditure of Ksh1.84 trillion is about 70 per cent of the projected revenue for the FY 2023/2024. This figure is quite high in comparison to the return on our exports. In short, the expenditures are very huge. Unfortunately, the Standing Orders are not very clear on how we should address these expenditures. As we discuss this important Report, the House has already passed the Budget Estimates, meaning we do not give these expenditures the kind of attention they deserve yet they take up a huge chunk of revenue. In the FY 2023/2024, CFS expenditures are projected to amount to Ksh1.84 trillion. In the FY 2022/2023, which has just ended, the figure was Ksh1.553 trillion. This is an increase of Ksh283.4 billion. Because the expenditures are a direct charge on the Consolidated Fund, they will constrain our fiscal space by reducing the amount of money available to finance other critical expenditures in the country. Over the medium-term, CFS expenditures are projected to hit Ksh2.2 trillion by June 2027. The increase is largely driven by expenditures required to service the growing public debt stock, which amounted to Ksh9.6 trillion as at April 2023. On average, debt servicing expenditures account for about 88 per cent of total CFS expenditures."
}