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{
    "id": 1527697,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1527697/?format=api",
    "text_counter": 101,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "Section 25(2) of the Public Finance Management Act, Cap. 412A, provides that the National Treasury shall submit to Parliament a Budget Policy Statement on or before the 15th of each year. Pursuant to these provisions, the National Treasury and Economic Planning submitted the Budget Policy Statement to Parliament on 13th February, 2025. Subsequently, the 2025 Budget Policy Statement was tabled in the Senate at its plenary sitting held on 13th February, 2025, and thereafter it was committed to this Committee for processing. The Budget Policy Statement is a Government policy document that sets out broad strategic priorities of the Government and how to fund them, including borrowing. The Budget Policy Statement ordinarily contains an assessment of the current state of affairs of the economy, including the macro-economic forecast as well as Government priorities in terms of the current pillars of growth and strategic directions. It also includes the financial outlook concerning Government revenues and expenditures as well as a borrowing framework to finance the budget over the next financial year and the medium term. It also includes the proposed expenditure limits for the national Government, including Parliament and the Judiciary, as well as the shareable revenue indicative for county governments. It also includes the fiscal responsibility principles and objectives over the medium term, including limits on the total debt. The Committee engaged with various stakeholders among them, the Commission on Revenue Allocation (CRA), the Council of Governors (CoG), the Institute of Certified Public Accountants of Kenya (ICPAK), the Bajeti Hub, the County Assemblies Forum (CAF), the Institute of Public Finance, HENET, the Institute of Economic Affairs, Okoa Uchumi, among others. In total, we engaged with 13 constitutional commissions and two independent offices. Members of the public like Mr. Kelvin Ronyo, Mr. Peter Njoroge and Mr. Eliud Matindi, have also submitted their memorandum to the Committee. The theme of the 2025 Budget Policy Statement is consolidating gains under the bottoms-up economic transformation agenda for inclusive green growth. The Policy envisions global economic growth of 3.2 per cent in 2024 and projected 3.3 per cent growth for 2025 and 2026. Economic growth in developing economies like ours was projected to stabilise at 4.2 per cent. I am happy to report that ours stabilised at 4.6 per cent in the preceding year, supported by technological advancement, a growing consumer base, and infrastructure development. The National Treasury initially projected economic growth for 2024-2025 at 5.6 per cent, but the actual performance declined to 4.6 per cent. The Budget Policy Statement projects that in the coming years 2025-2026 and 2026-2027, the economy will grow at 5.3 per cent in both those two years. This expected improvement from 4.6 per cent is attributed to expected agricultural performance favourable in the current financial year to continue in the coming financial year, supported by Government policies such as subsidised fertiliser and stabilisation of our currency. The Budget Policy Statement indicates that inflation has gone down and remained within the five per cent target band since 2024. It was primarily driven by substantial drops in energy prices globally and ongoing moderation of food prices, which have also 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."
}