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{
    "id": 1382370,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382370/?format=api",
    "text_counter": 256,
    "type": "speech",
    "speaker_name": "Wundanyi, WDM",
    "speaker_title": "Hon. Danson Mwashako",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker. I rise to support the Report on the consideration of the 2024 Medium-Term Debt Management Strategy that has come to this House at the appropriate time. It is important to put things into perspective. Many years back, this country engaged in borrowing both locally and out of the country without involving Parliament. This Report clearly outlines the policy on how the Government intends to engage in borrowing. This is to make sure that the budget deficits for every year, when the budget is passed, can be covered through borrowing. It is important to realize that this debt management strategy is a Government policy. Now that the Government has brought this document to Parliament as per the Constitution and the Public Finance Management (PFM) Act, 2012, it is upon this House to make sure that the policies and aspirations that have been outlined in these documents are fulfilled. Many times, borrowing in this country has been shrouded in controversy. Remember the times of the Eurobond. It was clear that money came into the country, but one could not trace where it went. Today, as we read this Report, we find ourselves in a situation where there is hope that if this document is to be followed to the letter, as a country, we shall get ourselves a better way of managing our fiscal debts. That way, we will not overburden the current and future generations. There is a principle in the Constitution that talks about inter-generational equity. Today, we may be excited about big projects that are done through money that we borrow from the Chinese and every other partner out there. However, if we are not prudent enough, then we will be over-burdening our future generations to a situation whereby we bequeath our children a country that is not sustainable. Therefore, we will have failed in our duty as people who are supposed to be responsible. I remember last year the Cabinet Secretary for the National Treasury stated in this House his attempt to change our national debt from an absolute number of Ksh10 trillion to anchoring it at 55 per cent of the Gross Domestic Product (GDP). We raised many issues because it looked like it was just another gimmick to confuse Parliament and the country. This Report indicates that we are currently above a debt to Gross Domestic Product (GDP) ratio of 70 per cent. The Government’s ability to reduce debt-borrowing to 55 per cent plus the 5 per cent that it indicated is something that must be looked into, pushed and forced, so that the Government demonstrates that it has the will and heart to bring down the rate of borrowing."
}