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{
    "id": 147085,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/147085/?format=api",
    "text_counter": 35,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, underlying this principle is a two-pronged strategy that aims at focusing expenditure on priority areas that have a higher impact on growth such as infrastructure and public works while at the same time ensuring sufficient expenditure to cushion the poor and vulnerable. The rest of my Speech now elaborates specific policy measures I intend to take within the framework of the five principles I have outlined above to overcome the challenges that we face today and build a stronger and more prosperous Kenya. At this time of crisis, it is more critical that we uphold our commitment to maintaining a stable macroeconomic environment. In this regard, we will continue to pursue fiscal policy and structural reforms aimed at restoring our economy back to a high growth path but without undermining the objective of monetary policy to bring inflation down to the 5 per cent target we have set for ourselves. In managing monetary policy, the Central Bank of Kenya (CBK) will strive to ensure the availability of sufficient liquidity to support economic activity while also allowing for gradual rebuilding of our official foreign exchange reserve which has been eroded by the adverse impact of the exogenous shocks mentioned earlier. Mr. Speaker, Sir, with respect to fiscal policy, let me say from the outset that it has not been easy to find room in our Budget for commitments to the national development objectives as outlined in Vision 2030 and to deal with the current challenges affecting the welfare of our people. As such, we have had to strike a balance between supporting growth and maintaining medium-term debt sustainability. Budgets are about priorities given the reality that financial resources are limited. Therefore, faced with the current economic challenges and bearing in mind that raising taxes is not a prudent option under the current circumstances, we as a Government, chose to partly accommodate the temporary financing shortfalls by savings arising from the rationalization of Government expenditure to remove waste and non-priority expenditure. I will shortly elaborate on the expenditures that we have rationalized. For the balance of the financing shortfall, we have adopted a programme of responsible borrowing. Hon. Members, we considered the approach we have taken in terms of raising additional resources beyond the tax we expect to collect not only appropriate but also prudent. This is a must if we have to safeguard jobs and bolster economic recovery. I am aware of the concerns that have been raised regarding the amount of money that we intend to borrow from the domestic sources to finance the Budget. I want to allay any fears Kenyans may have on this proposed borrowing. Our debt, in relation to our Gross Domestic Product (GDP) is currently below 40 per cent thanks to the prudent manner in"
}