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{
    "id": 1451418,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1451418/?format=api",
    "text_counter": 30,
    "type": "speech",
    "speaker_name": "Hon. Speaker",
    "speaker_title": "",
    "speaker": null,
    "content": "As per the guidance, any Member who wishes to move the House to reinstate any clause of the Finance Bill, 2024 shall be required to marshal the support of at least 233 Members. This is in keeping with the provisions of Article 115(4) of the Constitution, which requires that such a proposal be supported by at least two-thirds of the Members of the National Assembly. Conversely, agreement with the President’s reservations and the recommendation to delete all the clauses of the Finance Bill shall only require the support of a simple majority of the Members present and voting. This is in line with the provisions of Article 115(2)(a) of the Constitution as read together with Article 122(1) of the Constitution. Hon. Members, when the Memorandum will be scheduled by the House Business Committee for the clause-by-clause consideration of the Bill, the House will convert itself into a Committee of the whole House for that purpose. Any amendments to be proposed to the Bill will be proceeded with in the manner I have guided. Hon. Members, having conveyed the Message from the President, I now wish to address the various measures that need to be undertaken to bridge the fiscal deficit that is arising from the rejection of the Finance Bill, 2024. On the Division of Revenue Act, 2024, Article 218 of the Constitution requires Parliament to introduce the Division of Revenue Bill and the County Allocation of Revenue Bill at least two months before the end of each financial year. The Division of Revenue Bill divides revenue raised by the National Government among the national and county levels of Government. On its part, the County Allocation of Revenue Bill divides the revenue allocated to the county level of Government among the counties. As Members would recall, His Excellency the President assented to the Division of Revenue Act, 2024 on 10th June 2024. The Act provides for the division of revenue raised nationally between the national and county governments for Financial Year, 2024/2025. In particular, the Act provides that the total shareable revenue is Ksh2.9 trillion, out of which Ksh2.5 trillion was allocated to the National Government and Ksh400 billion to county governments. The revenue apportioned by the Division of Revenue Act was based on projections of revenue intended to be raised by the National Government in FY 2024/2025. As such, the amounts in the Division of Revenue Act, 2024 may only be realised if the projected revenues are collected by the National Government. Any shortfall in the projected revenue collection has a significant bearing on the shares apportioned between the two levels of government. Hon. Members, it is estimated that the rejection of the Finance Bill 2024 will occasion a financial gap of approximately Ksh346 billion. This gap shall significantly impact the amounts apportioned by the Division of Revenue Act, 2024; the revenue due to counties under the County Allocation of Revenue Bill 2024 and the monies appropriated to finance the Budget for FY 2024/2025. On the County Allocation of Revenue Bill 2024, I am aware that on 10th July 2024, His Excellency the President referred back the County Allocation of Revenue Bill 2024 to the Senate for reconsideration in light of the anticipated fiscal deficit. Article 219 of the Constitution obligates the National Government to transfer the equitable share apportioned to counties in the Division of Revenue Act without reduction. To ensure that the national Government does not default on its obligations, the Division of Revenue Act, 2024 ought to be amended to reflect the revenue that the National Government is capable of transferring to the counties in view of the current reality. Failure to amend the Division of Revenue Act, 2024 shall result in the national Government owing a financial obligation which it cannot clearly meet. In addition to the proposed reconsideration of the County Allocation of 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."
}