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{
    "id": 1451077,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1451077/?format=api",
    "text_counter": 4461,
    "type": "speech",
    "speaker_name": "Wundanyi, WDM",
    "speaker_title": "Hon. Danson Mwashako",
    "speaker": null,
    "content": "economic activity happening in the country. What we are doing today in reducing expenditure on development means that there will be little money in circulation. That will affect our aggregate demand and therefore we may not achieve the development aspirations that this country aspires to achieve. Therefore, the Executive, must create a conducive environment for the private sector to prosper, do business without interruptions and create jobs that have been elusive. I am saying this because we have a higher deficit. We had anticipated to have a 3.3 per cent deficit this Financial Year but because of what happened to the Finance Bill, 2024, the deficit has increased to almost 4.4 per cent. This, in itself, may result to the Government going into the money markets to borrow more, and therefore, crowding out the private sector. If this happens, interest rates will go up and the private sector will not access credit that is very important to their businesses and investments. In this financial year, the National Treasury appeared before us and indicated that it looked at a debt mix of 47 per cent internal borrowing and 53 per cent external borrowing in foreign financing. This must be looked at very keenly. As we borrow internally, we should be awake to the fact that any further borrowing will aggravate interest rates which will go up. As we go for foreign borrowing, we should not do it under commercial terms which are extremely difficult for the country. The Government should make sure that any borrowing is concessionary but not under commercial terms. The biggest challenge we have today is because we borrowed expensive loans such as Eurobond. We are suffering today because of paying interest rates that are in excess of a trillion shillings. I commend the Budget and Appropriations Committee for ring-fencing money for the employment of intern teachers and medical interns. As a country, we must put all our resources to where they matter most. Our young people do not have jobs. Some of them volunteer to work as teachers, doctors, and even at public service. We must create employment and allocate more resources to this. As I conclude, we may have to wait more for our roads to be constructed and electricity to reach our villages. However, as we do this, the Government must go out there and assure Kenyans that the roads that had been started, at some point in the next financial year, will be completed. We had promised Kenyans that we would connect electricity in every constituency."
}