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{
    "id": 222121,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/222121/?format=api",
    "text_counter": 334,
    "type": "speech",
    "speaker_name": "Mr. Michuki",
    "speaker_title": "The Minister of State for Administration and National Security",
    "speaker": {
        "id": 183,
        "legal_name": "John Njoroge Michuki",
        "slug": "john-michuki"
    },
    "content": " Mr. Temporary Deputy Speaker, Sir, \"prudent fiscal management\", someone will have to give us the definition of the word \"prudent\", because it so relative that it will mean different things to different people, and the law should not be ambiguous. The law must be clear and straight to the point, otherwise it will be wrongly interpreted. Let me tell you what this document says is prudent. Clause 4(a) reads: \"reduction of total debt to sustainable levels by ensuring that Recurrent Expenditure is less than the recurrent revenue in the same financial year\". Did you hear that, Mr. Temporary Deputy Speaker, Sir? That is the budgeting process which is directed towards the Recurrent Expenditure. The Recurrent Expenditure meets the salaries of civil servants and pensions of pensioners. Pensioners are people who have retired and have no other source of income. The Bill says that Recurrent Expenditure must produce surplus, despite many obligations, some of which are constitutional; like the payment of pension. That is what prudent management or fiscal policy means. Incidentally, if that was the case, even if we assumed that the proposed reduction will take place and people will be denied their salaries and dues in order to meet that obligation--- Mr. Temporary Deputy Speaker, Sir, Clause 6(2)(e) of the Bill says:- \"The Budget Statement of Intent and objectives shall state the broad strategic objectives and priorities that will guide the Government in preparing the Budget for that financial year, including- (e) proposal for financing any deficits for the financial year;\" One of the items that the Minister for Finance will report to the House is the proposal for May 15, 2007 PARLIAMENTARY DEBATES 1335 financing any deficits for the fiscal year. The Bill accepts a deficit and yet, it does not allow expenditure to balance with the estimated revenue because we have to reduce expenditure in order to produce surplus under the other clause that I had referred to earlier. So, there is a contradiction. We either have a balanced budget or a budget with a deficit. In that case, the Minister will give the House his proposals of how he intends to cover that deficit, either by borrowing or by raising taxes. Mr. Temporary Deputy Speaker, Sir, this afternoon, we went through the Supplementary Estimates. All of us, particularly the opposite side, should thank the Government for being able to produce a Supplementary Estimate of over Kshs19 billion from revenues at existing rates of taxation. That is to say, without increasing tax at all. That reflects the ability and capability of the Government to control expenditure and collect revenue. Mr. Temporary Deputy Speaker, Sir, our total Budget this year---"
}