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{
    "id": 1393791,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1393791/?format=api",
    "text_counter": 221,
    "type": "speech",
    "speaker_name": "Sen. Cheruiyot",
    "speaker_title": "The Senate Majority Leader",
    "speaker": {
        "id": 13165,
        "legal_name": "Aaron Kipkirui Cheruiyot",
        "slug": "aaron-cheruiyot"
    },
    "content": "The reason why we find ourselves analyzing and looking into our debt situation is because we continue to spend way above what we can afford. Until we come up with concrete policies such as what is being proposed here--- The Committee has noted that in the Budget Policy Statement (BPS) that was presented and passed by this House, there is a proposal to reduce, the fiscal deficit to 3.9 per cent of the GDP by Financial Year 2024/2025. It is a tall order. I know that on this current financial year, we are in and perhaps our colleagues who are in the Budget and Finance Committee would have done us more justice if they had guided us as a House and told us how far off the fiscal deficit, we are on account of forex exchange, because it is a significant contributor. Madam Temporary Speaker, If you have a debt of Kshs1 billion by the time the US$ is at Kshs140 as was the case at the beginning of this financial year and then it moves upward to Kshs160 and downwards, it messes up our fiscal deficit. It is important that we are given the net present value of that particular deficit because it is the one anchor point that points us as a nation to know whether we are living within our means or above it. Therefore, I want to appreciate the Committee’s proposals on ways through which Parliament can keep tabs on the deviation from the fiscal deficit. The same way we proposed before the country and urged that by the Financial Year 2028/2029, we will anchor our debt at 55 per cent of our GDP ratio. We need to propose further amendments to the Public Finance Management Act so that we know that anytime there is a deviation over and above the BPS anchor or indicator on the fiscal deficit, the Treasury, through our colleagues in the National Assembly, are forced to return and do a supplementary Budget cut down and reduce on the programmes. It is not as difficult as many people want to put it. It is common sense. It is what every Kenyan does. If you were working at a blue-chip company and you lost your job, what every average Kenyan does is that they move and downscale their life expenditures. If you have a bigger car, for instance, a 4x4, you sell it and buy a smaller one or even use public means. If you are living in a place where you are paying rent, you move to places where you can afford. It is what every citizen does. This is not rocket science that you are asking of the Government. This is what is meant by fiscal consolidation. We want to move this nation to this particular path. However, we shall not achieve it unless as Parliament we rise to the occasion and ensure that we provide and make law. We can propose that any time there is a deviation of the fiscal deficit beyond a certain, percentage point, be it 0.5 at the very maximum, then it triggers the beginning of a supplementary process so that you downscale. I know it is not easy, but it must be done if we hope to recover as a country. Remember right now we can breathe a sigh of relief because Eurobond has been settled. It is the largest single bullet payment of US$2 billion-plus that we were thinking about the last few months. On account that, there is a huge sigh of relief across the country. Madam Temporary Speaker, who tells you that we cannot find ourselves in a situation where even to pay US$1 billion in one single swoop would be impossible? It is very possible given the cash strain conditions that we find ourselves in as a country. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}