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{
    "id": 1383930,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1383930/?format=api",
    "text_counter": 762,
    "type": "speech",
    "speaker_name": "Suba South, ODM",
    "speaker_title": "Hon. Caroli Omondi",
    "speaker": null,
    "content": "I rise to support the Budget Policy Statement (BPS). However, I would like to make some observations that will probably enrich future budget policy statements from the National Treasury, and also the work of the Budget and Appropriations Committee. I have looked at page eight of the Report which talks about the stability of the macro-economic situation. This Report is heavy on allocation of resources and revenue-raising measures. That is not how you run an economy. A budget policy statement should clearly provide specific interventions or measures to deal with the challenges that the economy is facing. Both the document from the National Treasury as well as this Report are short on those details. In particular, I would have wanted to see more macro-economic targets and interventions, and time frames for their implementation. We are running a very huge budget deficit based on historical factors. However, I do not see specific measures for expenditure rationalization, or strong measures for spending cuts in this Report. We have experienced a spike in interest rates, which are currently standing at about 26 per cent, which is too heavy for the private sector. This is especially so when we think of creating jobs, the political risks, as well as the commercial risks that are normally factored into our transactions. The 26 per cent interest rate is too high and yet, I did not see in this Report and what was presented from the National Treasury a glide path as to how we intend to lower our interest rates. We have experienced very serious exchange rate instability over the last few months and yet, I also do not see macro-economic interventions in this Report that will stabilize the exchange rate and create a balance between importers and exporters’ interests. The same applies to the inflation rate. I only saw two casual mentions of the growth rate on page eight of the Report and some aspects of inflation, but not the totality of it. I think we need to do more. We have a serious case of debt management in this country. I took the time to look at the Statement of Actuals issued by the National Treasury for December. About 93 per cent of the revenue raised was used to service external and domestic debt. The Government is currently paying a 19 per cent interest rate on domestic debt, which translates to over Ksh1 trillion in redemption costs, and another Ksh1 trillion in interest payments. However, there are no specific measures as to how we will deal with this particular problem in the document. What will we do about our debt? I do not see that here. I do not see the measures that we will put in place to encourage budget discipline. One of our biggest problems as a country is that we do not stick to the budgets that we make. That is why we have excess pending bills. However, I do not see in this BPS the measures that will 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"
}