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{
    "id": 1565478,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1565478/?format=api",
    "text_counter": 163,
    "type": "speech",
    "speaker_name": "Sen. Cheruiyot",
    "speaker_title": "The Senate Majority Leader",
    "speaker": {
        "id": 13165,
        "legal_name": "Aaron Kipkirui Cheruiyot",
        "slug": "aaron-cheruiyot"
    },
    "content": "Anyway, returning to the discussion on Division of Revenue Bill (National Assembly Bills No.10 of 2025), Clause 4 stipulates that revenue raised nationally for the financial year 2025/2026 shall be shared equitably between the national and county governments, in accordance with the Schedule of the Bill. Clause 5(1) provides that if the actual revenue raised nationally falls short of the expected revenue set out in Schedule, the shortfall shall be borne by the national Government. If you listened to me earlier, I had proposed only 15 or 20 per cent. Subsequently, if you have a significant shortfall because in the first instant you had taken 80 per cent of the national budget and left it at the national Government, then they shall bear the responsibility. I must appreciate that that has always been the case, save for unique moments when we have had challenges, like last year when we had the failure to assent the Finance Bill, there was a significant drop in nationally expected revenue by close to Kshs400 billion. Therefore, we had to review downwards what we had actually proposed in DORA. If you recall, late last year towards November, we had to do a new set of Division of Revenue Bill. I cannot get the exact figures. I think the Members of the Budget and Finance Committee will recall that we had to do that. Clause 5(2) of the Bill provides that, “if the actual revenue raised nationally exceeds the projected revenue set out in the Schedule, the excess revenue shall accrue to the national government and may be used to reduce borrowing or pay debts.” This has never happened and it will be Christmas or Ramadan, whichever way you may, want to put it, if it happens. What would happen if this were to ever happen, that we raise more than the projected revenue? The excess revenue shall accrue to the national Government and may be used to reduce borrowing or pay debts. It is just a balance, that if there was to be a shortfall, you bear the burden. However, if we were to happen that you get a windfall and raise excess revenue beyond what we had projected, then that becomes something for the National Treasury to manage our budget books better. This has never happened in all those years and I do not see it happening. I will be looking with more detail to see what the fiscal deficit will be. Since that is the indicator of what will be the eventual budget that will be projected before we eventually agree on this issue of division of revenue. I want our colleagues in the National Assembly to hear me loud and clear. If the fiscal deficit is above 4.5 per cent, then we have no reason not to send upwards of Kshs420 billion to Kshs430 billion to the counties. I will be speaking to that later, when eventually they lay their report on the Floor of the House next week. I cannot speak for now because I do not know eventually what they will agree on. Accordingly, we will be waiting for the report of the Committee on Finance and Budget of the National Assembly. My point and my argument, which I shall be pushing on the Floor of this House as somebody who follows, understands and knows our budget-making process keenly, knows what ought to be the balance between what is shared nationally and at the county 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."
}