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{
    "id": 1478535,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1478535/?format=api",
    "text_counter": 185,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for National Treasury and Economic Planning",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "to capture this information. Yes, we could. However, we have the Public Sector Accounting Standards Board, which determines the kind of systems that we use. It is a recommendation that we can put to the board, so that they approve it, and then we have a system that would capture some of this information as and when they are onboarded to the system. Again, Senator, you are spot on that the approved budget is not what is expended. That is true. Our absorption level is low, especially on donor-funded projects or projects funded through development partners through loans and grants. This is due to a number of reasons, some of which are internal and some also relate to the development partners. However, many of the issues are because of us. One, most of the donor-funded projects require counterpart funding. Sometimes, we put the donor-funded projects in the budget without sufficient provision, or we end up reducing our budgets, as has happened in this financial year when we realized that we could not collect so much. So, you find a deficit in the counterpart funding, which would affect the donor-funded project because for the development partners to release the money, they must be assured that the counterpart funding is guaranteed and forthcoming. This is a serious challenge that we must deal with. Secondly, the development partners have also raised reporting issues. Nonetheless, in terms of the strategy going forward, without going into the details of why these absorptions have not been forthcoming or have not been smooth, we have a team looking into this matter, coordinated by my Ministry, and we will address all these issues. Just a few days ago, I think two days ago, I was dealing with a case of the Finnish Government ready to support providers with grants, not even a loan. However, our internal systems are complicating the implementation of the same. So, these are efficiency issues that must be dealt with. There are also other budgetary issues. We must also have a strategy for making sure that if we are factoring funding into our budget from development partners, there must be matching funds or counterpart funding so that when it comes to implementation, the implementation becomes smooth. So, that addresses your issue of how we ensure the uptake of these development funds, especially now that funding is shrinking daily, we must make sure that we clear the hurdles on these development- funded projects. Sen. Dullo has raised serious concerns with the counties' revenue collection, and I cannot agree more. There is already a proposal that has gone to an advanced stage to have a standardised system for the collection of revenue in counties. There is no reason why we should operate like we are 48 governments. We are a country with devolved systems of government. Nonetheless, we need a standardised system, so that if you come from Isiolo, you go to Homa Bay; it is almost predictable. If you are a business person, what to pay, how much and even how to pay should be standardised. So, that process is ongoing. Unfortunately, consensus has not been reached with the Council of Governors. I appeared before the last and my first Intergovernmental Budget and Economic Council (IBEC) meeting, and this matter is still being discussed. I hope soon we will find 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."
}