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{
"id": 20136,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/20136/?format=api",
"text_counter": 489,
"type": "speech",
"speaker_name": "Mr. Kenyatta",
"speaker_title": "The Deputy Prime Minister and Minister for Finance",
"speaker": {
"id": 168,
"legal_name": "Uhuru Muigai Kenyatta",
"slug": "uhuru-kenyatta"
},
"content": "Mr. Temporary Deputy Speaker, Sir, the Appropriation Bill basically seeks statutory approval by Parliament of Government expenditures contained in the Estimates of Expenditure for the Financial Year 2011/2012. The Estimates for Recurrent and Development Expenditure were laid before this House on 8th June, 2011 and the House approved the Vote on Account again on 16th June, 2011. The Government has since been disbursing funds on the basis of that authority. Mr. Temporary Deputy Speaker, Sir, the Budget for the Financial Year 2011/2012 presented to this House in June was formulated, as I have stated before, within a tight fiscal framework and against the backdrop of new challenges stemming from rising international commodity prices, including fuel, food and also challenges associated with delayed rainfall and drought. Drought related issues have put pressure and, indeed, needed provision for additional budgetary resources to mitigate against the impact of drought and, in particular, to support Kenyans requiring emergency famine relief assistance. In this regard, the Cabinet, indeed, met in July, 2011, and approved Kshs10.9 billion for emergency drought mitigation measures which has since been included in the adjusted Budget Estimates. Mr. Temporary Deputy Speaker, Sir, Members will recall that while reviewing the Financial Year 2011/2012 Budget, Parliament did recommend some adjustments to the Budget which were to be funded through reallocations and spending cuts. We have tried as much as possible to implement most of the recommendations, but taking into account that the financial implication was not fully costed of the issues that I have just mentioned earlier, we had to rationalize the requirements to ensure that we operate within a sound fiscal framework. Mr. Temporary Deputy Speaker, Sir, in view of the financial constraints and the need to ensure sustainable domestic borrowing, we considered priority areas which included, Regional Development Authorities, requirements for the Albino Community, Rural Electrification Authority, Judges and Magistrates Vetting Board and the political parties, amongst other priorities. To fund additional expenditures and close the financing gap, the following measures were proposed: They include using the existing contingency provision and Budget reserve totalling Kshs2.5 billion, realignment and reallocation of expenditures in some areas as proposed by Parliament and directing the savings amounting to Kshs10.3 billion to emerging needs. Further, cuts on domestic and foreign travel amounting to Kshs749.6 billion were made. Enhanced tax measures, again, amounting to Kshs3.1 billion and miscellaneous revenue of Kshs980 million. Mr. Temporary Deputy Speaker, Sir, the funds sought will be used for payment of salaries of public servants and to meet operational and maintenance expenses under Recurrent Votes, while those sought for under the Development Votes are to be used to implement development programmes. Mr. Temporary Deputy Speaker, Sir, I wish to assure hon. Members that funds shall be utilized efficiently to achieve the purposes and provide services for which this House has approved. Financial discipline and economy will, indeed, continue to be our guiding principle to achieve macro-economic stability and facilitate the achievement of our development goals, as articulated in Vision 2030. We, indeed, are aware of the challenges facing our education system. This is an issue that, as a Government, we have been addressing and will continue to address. I want to assure teachers and all concerned that through discussion and dialogue, we are sure to reach not only just an amicable solution, but a solution that will provide us with the ability to continue to provide adequate and quality schooling for all our children in our public institutions. Mr. Temporary Deputy Speaker, Sir, yesterday evening, we did meet, indeed, with the President, Vice-President and Prime Minister, amongst others, and went through a number of alternatives, including the possibility of hiring an additional 20,000 teachers on contract basis. These are proposals that we will continue to dialogue on with the Committee on Education, Research and Technology and the two teachers’ unions, with a view of finding an appropriate way forward. Mr. Temporary Deputy Speaker, Sir, I now wish to present the Appropriation Bill, 2011 which contains details of supply for each Vote and the amounts to be applied as Appropriations-in-Aid. Clause 2 of the Bill provides for the issue out of the Consolidated Fund of a sum of Kshs742,660,672,336 to appropriate the funds for the various services and purposes during the year ending 30th June, 2012. Out of this amount, Kshs482,190,901,515 relates to Recurrent expenses and Kshs260,468,778,821 is for Development expenses. The sum includes the amount authorized by the National Assembly on 16th June, 2011 by Vote on Account under Section 221 of the then Constitution of Kenya. Clause 3 of the Bill makes provision for sums to be applied as Appropriations-in-Aid for the various services and purposes. Mr. Temporary Deputy Speaker, Sir, I wish, once again, to thank all hon. Members, and especially Members of the Budget Committee, indeed, for their dedication and constructive deliberation as we discuss the issues of public expenditure management. I want to assure you that all the recommendations and guidance given have been taken positively for better management of resources at our disposal. Indeed, I look forward to working with them and also look forward to their continued support and guidance. Mr. Temporary Deputy Speaker, Sir, with those remarks, I beg to move and ask hon. Kinyanjui to second."
}