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{
"id": 1580002,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1580002/?format=api",
"text_counter": 3922,
"type": "speech",
"speaker_name": "Kitui Central, WDM",
"speaker_title": "Hon. (Dr) Makali Mulu",
"speaker": null,
"content": " Thank you, Hon. Temporary Speaker. I can explain some scenarios that necessitate a Supplementary Budget for CFS expenditures. Hon. Members, you know well that most of our external debt is in foreign currency, such as dollars and euros. One of the reasons for a supplementary budget is a change in the exchange rate, which could trigger the need for additional resources for repayment. Once the rates change, you will automatically have more than you budgeted for. Another situation occurs when tabulating the loans due; if you miss one that is due within the year and needs to be paid, you must factor in that amount. In my view, Consolidated Fund Services (CFS) is the easiest option for managing supplementary budgets because, once it is approved, you only need to focus on making the payments. Some of the earlier issues we were discussing require procurement, and you may lack time. However, there is a way to address this. Hon. Temporary Speaker, regarding this Report, the challenge we face with CFS expenditures is the budget deficit. Every financial year, we address the budget deficit. For instance, we have agreed that it will be 4.5 per cent of the gross domestic product (GDP) for the Financial Year 2025/2026. When the Chairperson presented the Budget summary, 4.5 per cent of our total Budget amounted to Ksh876 billion. However, when Hon. Mbadi, the Cabinet Secretary, specified the amount to be borrowed, he indicated Ksh920 billion, resulting in a difference of Ksh47 billion. Thus, the Report approved here by the Public Debt and Privatisation Committee was Ksh876 billion, while the Cabinet Secretary's Report was Ksh920 billion. So, when the budget deficit fluctuates, it complicates the predictability of the Budget. We have a budget that is a moving target, and as a House, we must firm up our approach. Once we agree on the amount to be borrowed by the Government in this financial year, we should not allow these figures to change midway, which would lead to the unpredictability we currently experience. All said and done, CFS expenditures represent the highest expenditure item in our Budget, now approximately Ksh1.2 trillion. This leaves minimal fiscal space for other activities. As a House, we need to deliberate seriously about managing CFS expenditures. Within these expenditures, the most significant item is the payment of public debt, encompassing both interest repayments and principal payments. This is a serious matter requiring our attention to assist the country in addressing it. Hon. Oundo raised the issue of timing. I have been listening since morning, including your contribution to the earlier Motion. We, as a House, should not apologise for the National Treasury's inadequacies. The pressure we face stems from the late presentation of budgets, which does not allow sufficient time for the House to process them. We must establish a firm deadline, instructing that if a Supplementary Budget is not submitted one month before the end of the financial year, it will not be considered. This will enable us to examine the Budget in detail and ascertain what payments will be made. Hon. Temporary Speaker, Article 223 has been controversial. Since we joined this House together, we have engaged extensively in the Budget and Appropriations Committee, consistently discussing Article 223 and its loopholes regarding the National Treasury's utilisation. I wish we could dedicate more time to reviewing proposed expenditures under Article 223, as these represent some of the easier avenues used by certain technocrats to misallocate public resources. As a House, we must discuss this issue and take a firm position. I recall a past discussion when Hon. Mbadi was a Member of Parliament, where we both"
}