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{
    "id": 1382830,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382830/?format=api",
    "text_counter": 84,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "The 2024 BPS projections on ordinary revenue as a share of GDP indicate that revenue will increase from 14.3 per cent of GDP in the 2022/2023 FY to 17 per cent in the medium term (by Financial Year 2026/2027). The projected ordinary revenue collection for FY 2024/2025 is Kshs2.948 trillion, while projected revenue including grants is Kshs3.484 trillion. The proposed total expenditure and net lending for the Financial Year 2024/2025 is Kshs4.188 trillion. Compared to Kshs3.484 trillion, it creates the project fiscal deficit for the Financial Year 2024/2025 at Kshs703.9 billion which will be financed through borrowing. The National Treasury proposes to borrow Kshs326 billion from external markets and Kshs377.9 billion from the domestic market. At this juncture, it is worthwhile noting that while it is easily accessible to the Government to borrow from the domestic market, it also poses a risk of crowding out the opportunity of lending to businesses in the country. As such, it also hampers investment as well as revenue collection if the opportunity for financing is limited. It is attractive for lenders to lend to the Government because of the high-interest rates that the Government offers in the guarantees as opposed to individual lenders. The Government proposes to focus on the implementation of various interventions and policies geared towards the reduction of the cost of living and improving livelihoods by identifying several sectors within the BPS that will help in the realization of the projected revenues. Regarding the division of revenue, the National Treasury proposes an allocation of Kshs391.1 billion to county governments as an equitable share for the Financial Year 2024/2025. The increment from Kshs385.4 billion allocated in the Financial Year 2023/24 is Kshs5.7 billion (1.47 per cent growth). This proposed allocation represents approximately 13.2 per cent of the projected ordinary revenue of Kshs2.948 trillion for Financial Year 2024/25. We have given this figure for purposes of comparison. Note that it is the base of revenue sharing because it does not represent the last audited and approved accounts. However, these are projected revenues of the Government in the coming financial year. If we compare this to the audited and approved accounts of the Government, it comes to Kshs1.570 trillion, which is 24.91 per cent being the most recent audited and approved revenues raised nationally in Financial Year 2020/21. The National Treasury attributed this marginal growth as sufficient in their view. Our engagement with the CS of National Treasury has indicated that a lot of reality has not gone into the scientific determination of what the bare minimum revenue growth for the county governments should have been. County governments are projected to receive additional allocations amounting to Kshs54.7 billion comprising the following allocations- (a)Road Maintenance Levy Fund - Kshs10,522,211,853. (b)Aggregated Industrial Parks programme for 18 counties -Kshs4,500,000,000. (c) Supplement for Construction of County HQs- Ksh445 million – it is worthwhile to note that the committee has received a request for five county governments The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Director, Hansard Services, Senate."
}