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{
    "id": 147087,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/147087/?format=api",
    "text_counter": 37,
    "type": "other",
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    "content": "which we have managed our public debt in the past. Moreover, debt sustainability analysis done taking into account the planned new borrowing demonstrates that we face a low of risk of debt stress. Therefore, we are in a position to comfortably borrow in the short-term to finance the proposed fiscal stimulus package without compromising on macroeconomic objectives. Mr. Speaker, Sir, under the proposed fiscal framework, our total public debt is projected to pick at 44.5 per cent of the GDP in 2009/2010 before declining thereafter. It is, however, instructive to note that even at this level, our debt position remains within tolerable levels and is much lower than that of some of the large industrialized countries. Nevertheless, over the medium-term, we intend to bring down the Budget deficit in order to commensurately reduce the debt ratio. We are also seeking for additional concessional assistance from our development partners which we intend to use to pay off part of the domestic borrowing that will be applied to finance the fiscal stimulus package. Mr. Speaker, Sir, as I have already indicated, the major policy challenge that we face today is how to push the frontiers of economic growth to a sustained higher level, create economic opportunities and reduce poverty. Implementing measures to achieve these objectives means that the Government Budget for 2009/2010 will be expansionary. The overall balance is expected to be in deficit by about 6.6 per cent of the GDP. As I have already mentioned, we plan to accommodate our financing shortfall partly from rationalizing expenditures to remove wastes and generate savings. As hon. Members will recall, in the Supplementary Budget of 2008/2009, I took measures to streamline Government expenditure to generate savings without compromising delivery of public services. However, let me remind hon. Members that these are, indeed, difficult times and difficult times require bold decisions. Indeed, that is what Kenyans expect of us. For this reason, I am going a step further to institute more bold measures so that I can raise the resources we require to finance the priority pro-growth and pro-poor expenditure planned in this Budget. To this end, I have reduced from the ceilings of all Ministries the following non- priority expenditure that I believe will have no material impact on service delivery. This entails reductions as follows; 80 per cent on furniture and fittings; 60 per cent on advertising and publicity; 40 per cent on telephone expenses; 20 per cent on hospitality, supplies and services which include – and I emphasise - payments to various task forces appointed by the Government and 10 per cent on domestic and foreign travel subsistence."
}