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{
    "id": 1382348,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382348/?format=api",
    "text_counter": 234,
    "type": "speech",
    "speaker_name": "Seme, ODM",
    "speaker_title": "Hon. (Dr) James Nyikal",
    "speaker": null,
    "content": "should agree that we do not borrow for consumption to finance our recurrent expenditure. However, when we borrow for development, we should plan to ensure that it brings revenue later on. Those are the most important issues when you are dealing with debts. What is the source of debt? As I have said, it is basically a budget deficit. The budget deficit is our expenditure against our revenue. Therefore, if we have a large fiscal deficit, we should look at cutting or reducing our expenditure instead of seeking more loans. Debt is good, but it becomes a problem when you cannot repay it. We have too many problems in this country. The cost of living has gone up because we are servicing the debt. We cannot finance our expenditure. We must reduce expenditure. This Report has two main parts, one is a list of financial resolutions that are directly related to what we plan to do. The fiscal deficit target is projected at 3.9 per cent of the GDP for the Financial Year 2024/2025. The issue is: Can we adhere to these proposals? Last year, we set this target at 4 per cent and now we are at 5.5 per cent of the GDP! We have a deficit. We can come up with all these resolutions but are we going to adhere to them? The country’s borrowing strategy is approved at 55 per cent of the GDP for external borrowing and 45 per cent for domestic borrowing. This is a good thing if we stick to it. Last year, we set this at 53 per cent of the GDP and we went up to 68 per cent. We had also set our debt ratio at 55 per cent and we went beyond that. Therefore, these policy recommendations are key and without them, the financial resolutions in the Report will not work. We should encourage…"
}