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{
    "id": 1590956,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590956/?format=api",
    "text_counter": 171,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "1. Continue with the implementation of the National Tax Policy and the Medium- Term Revenue Strategy to provide a consistent and predictable framework for tax administration and policy formulation. 2. Continue with the automation of tax administration processes to improve the overall efficiency of the tax system. 3. Enhancing non-tax revenue collection by enabling Ministries, Departments, and Agencies (MDAs) to generate income through the services they provide to the public. Hon. Speaker, as part of our broader fiscal reform agenda, the Government is undertaking targeted tax administrative reforms aimed at strengthening our revenue base and promoting inclusive economic growth. These reforms will focus on three key objectives: 1. Reducing tax expenditures. Hon. Speaker, tax expenditures stood at 3.38 per cent of GDP in 2023. To unlock additional revenue for the National Government, we must reduce that tax expenditure. 2. Expanding the tax base and enhancing compliance, in line with the goals set out in the Medium-Term Revenue Strategy. 3. Streamlining the tax structure to encourage domestic production, attract investment, and stimulate economic growth. Hon. Speaker, allow me to speak to improving the efficiency of public expenditure. In our continued effort to ensure prudent fiscal management, the Government will sustain and deepen measures aimed at strengthening expenditure control and enhancing the efficiency and effectiveness of public spending. To this end, the Government will implement a series of targeted actions which include: 1. Utilisation of the launched end-to-end e-procurement system to maximise value for money, enhance efficiency and transparency in public procurement processes. 2. Rolling out of a Human Resource Management System across all National Government Ministries and Departments, as well as county governments, to support better management of the public wage bill. 3. Scaling up the use of the Public-Private Partnerships (PPPs) framework for commercially viable projects to attract private sector participation in public service delivery. 4. Improving the public service pension administration through rolling out the pension management information system. 5. Fast-tracking governance reforms in state corporations to strengthen accountability, efficiency, and financial sustainability. Let me now turn to revenue projections. Hon. Speaker and Members, based on the outlined policy measures and structural reforms, total revenue collection, including Appropriation-in-Aid (A-in-A) for the Financial Year 2025/2026 Budget is projected to be at Ksh3,321.8 billion which is equivalent to 17.2 per cent of GDP. Of this, ordinary revenue is projected at Ksh2,754.7 billion which is equivalent to 14.3 per cent of GDP, and Ministerial A-in-A also known as non-tax revenue, is projected at Ksh567 billion. Grants are projected at Ksh46.9 billion or 0.2 per cent of the GDP. On expenditure projections, Hon. Speaker, total expenditure in the Financial Year 2025/2026 Budget is projected at Ksh4,291.9 billion, which is equivalent to 22.3 per cent of GDP. Of this, recurrent expenditures will amount to Ksh3,134.4 billion which is equivalent to 16.3 per cent of GDP and development expenditures, including allocations to domestic and foreign-financed projects, Contingency Fund and Equalisation Fund will amount to Ksh693.2 billion, which is equivalent to 3.6 per cent of GDP. Total allocation to county governments is projected at Ksh474.9 billion of which equitable share is Ksh405.1 billion. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}