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"id": 222418,
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"speaker_name": "Mr. Oloo-Aringo",
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"speaker": {
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"legal_name": "Peter Oloo Aringo",
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"content": "Mr. Temporary Deputy Speaker, Sir, thank you for your wise comments. As I was saying, the National Assembly does not get involved in the formulation of policy, but we would like to interrogate that policy before we approve or accept it. As I said, it is not the figures at the end, it is the policy and I was giving an example. If year in, year out, the Ministry of Defence receives Kshs60 billion from the Budget and the Ministry of Water and Irrigation receives Kshs2 billion, clearly that is a skewed manner in which the allocation has taken place. It simply means that for ever and ever, we shall never get irrigation projects moving. We shall never get priority on water. It is that type of debate that hon. Members will put in their own contribution by altering the priorities of the Government from, say, the Ministry of Defence to the Ministry of Water and Irrigation. That is the sort of thing that we shall look at when it is brought early in March. There are two months during which it is sent to the various Departmental Committees, co- ordinated by the Budget Committee. When it comes back, therefore, it is debated by this House. The priorities are handed back to the Minister who will then take into account the contribution and comments of hon. Members. That is what we are asking for, and that is what has not been happening. In the past, the policies were determined by, largely, civil servants who dictated them. If you want to know one reason why our country has not developed, it is because the most important section of our policies, which is the Budget, is controlled by civil servants. They determine the allocations and they also determine the re-allocations. However, by bringing the Budget early in March, we will have two months during which Departmental Committees will scrutinise, in great detail, their portfolio. The Budget Committee will co-ordinate this, and the Minister will take those comments to make the final Budget. That is participation. It is important in two ways. We are not taking over the role of the Executive in drafting the Budget. No. That has been the story which has been spread as a propaganda in order to kill this Bill. We acknowledge that the Government is elected on a certain manifesto and comes here to implement that manifesto. We do not usurp that role as Parliament, but we are saying that we have a right to ask: Are they correctly implementing the manifesto on which they were elected? Was their priority to buy guns and other weapons at the expense of irrigation, water and agriculture? For example, we may decide, as we have almost decided, that we want to put more money in education. It is at that stage that we will prioritise education and tell the Minister that when you go May 10, 2007 PARLIAMENTARY DEBATES 1289 back to make the final Budget you take into account, our priority which is education, over defence, for example. Therefore, the representatives of the people will be setting priorities in the Budget process. That is as important as this Bill is. I am highlighting that in the first part. Mr. Temporary Deputy Speaker, Sir, there are other aspects, which I have highlighted in the Bill. For example, we have brought in compliance reports and treasury reports year in, year out. This House, and particularly the PAC, has noted that there is very little compliance. But the Minister, or the Ministry continues, to receive money. This compliance report will now be mandatory. It will be required that you must show how you have complied with the previous Budget before you are allocated the money for this year. Now, that type of sanction will bring sanity to the management of public affairs in our country. The Compliance Report, therefore, indicates the extent to which the Government has met Budget targets and objectives. The Treasury Report will indicate the steps that the Government has taken to implement audit recommendations. This has been the missing link. As hon. Members of Parliament, we have the power. Therefore, we cannot go home complaining, particularly when we complain outside there and yet, we have the power to make the law to compel compliance. What are the people supposed to do? That is being defined here. Part I of the Bill also provides for the commencement date, which is, 90 days from the date of enactment. This is important because, as hon. Members will agree with me, we had a ping-pong here over the Donde Bill, just because of the commencement date. Because of the delay, the commencement date passed before it was implemented. The Government refused to implement the Bill because the commencement date had not been applied. It is important, therefore, that it be taken care of here; that the date will be three months after the President has given assent to the Bill. So, there is no escape about that. Therefore, we are making sure that the commencement date is water-tight this time. The Bill, when it becomes law, will become an integral part of the existing law to implement prudent fiscal and financial management of public resources. The prudent management of financial resources in this country has been a futile exercise. Even this afternoon, we were talking about the Anglo Leasing and Goldenberg scandals, which are demonstrations of the skewed manner or corrupt way in which some things were done. Part II of the Bill deals with the principles of prudent fiscal management. We want Parliament to lay these principles. In the past, nobody paid attention to any principles. If you read budget speeches by the Ministers for Finance over the last 20 years, you will find that they were almost the same. You would almost only change the titles and find that they were saying the same thing. It is our responsibility now to set bench marks against which we shall judge the Minister for Finance. So, Part II of the Bill is devoted to the principles of prudent fiscal management. It has three objectives. The first objective is to lay down the principle of proper budget management. The second objective is to identify who is responsible for making sure that these principles are followed. There, we name the Minister for Finance as being responsible for ensuring that those principles are followed. Three, it provides a situation where it may be necessary to depart from this principle. In other words, we are equally flexible. If there are circumstances under which the Minister must waive this, then that is allowed, but he must come back to the House to explain why he has not complied with the principle. Section 4(1) lays down the principle of proper budgeting. This principle will cover crucial budgeting elements. I will name them, because they are important. The elements include aiming at maintaining sustaining debt levels and minimising financial risks to the Government of Kenya, especially, on guarantee on loans, pensions and pending bills. I am sure we were all here in the afternoon, when the Minister gave figures about the so-called pending bills; staggering figures which we still owe. They were not made clear to this House until we demanded that they be made 1290 PARLIAMENTARY DEBATES May 10, 2007 clear. The third principle is on designing wage policies that are sustainable and capable of attracting and retaining competent staff thrift, as well as consistence with the size of the economy. The fourth principle provides tax policies that are predictable and stable. I know that we have moved a long way from the taxes that used to be announced at midnight to be implemented. We want to be able to predict. This must be a principle which is enshrined in law. The fifth principle is ensuring transparency and accountability in the management of budgets and economy. Now, this is our major argument; that we must be transparent. If we had been transparent, there would have been no loophole for the Anglo Leasing or Goldenberg scandals, because we would have anticipated what was coming. The reports would be coming on a regular basis. Section 5(1)and 5(2) allows for deviation from these principles, once the Minister comes and explains to this House. All deviation, therefore, must be temporary. The Minister must justify a deviation before it is implemented. He or she must state his or her plan of action to deal with situations, as well as indicate how long the duration will last. In other words, this House must be in a position to guide the Minister, but not just to be taken for granted, as has happened in the past. Part III of the Bill is about Budget Statement of Intent and Objective. It has four elements. The first element specifies the contents of the budget statement of intent and objectives. The second part creates reporting obligation, through the regular filing of compliance reports. If these reports were brought to the House, the Goldenberg scandal would never have reached the heights that it did. Likewise, the Anglo Leasing scandal would never have taken place, because we would have been able, as a House, to anticipate what was coming. Therefore, there is no need for us to go and complain in funerals. Let us make the law that will control this, and this is the law. The Bill also intends to identify the nature and content of compliance reports before general elections. Every Government that comes to power blames the previous Government saying the coffers are empty. On the other hand, in this law, the Government must lay on the Table of this House the last compliance report, which will be 90 days before the general elections, so that we know what it is that it is leaving behind. It is important that we know that one cannot run down the economy and hope to give excuses. This law will curb situations where the Government that comes into power will be blaming the previous Government, when, indeed, the problems could be of its own making. Mr. Temporary Deputy Speaker, Sir, we are, therefore, building or putting in place institutions. Whether we shall be there or not, the generations to come will know in advance--- For example, this year, we have announcements of goodies everywhere, including new districts, this and that, but nobody will factor them in the Budget. So, we are doing it for political reasons. Nobody included them in the Budget and, yet, the goodies are being given in the morning and evening. We want to stop this culture so that we can work through institutions. The institution to control this is Parliament. Mr. Temporary Deputy Speaker, Sir, the Bill also includes content of the budget statement which must be laid before the National Assembly by 31st March of each year. If Parliament is not in Session, it will be laid before it as soon as possible after it reconvenes. The statement, therefore, is analogous in intents and content, like the budget outlook paper, which is usually produced by the Treasury. But the Treasury does not bring it to this House. So, hon. Members do not know about it. That information must be in the public domain, but it must also be interrogated by the representatives of the people in Parliament. Mr. Temporary Deputy Speaker, Sir, the Budget Strategy Paper of Intents and Objectives lays out objectives and priorities that will guide the budget preparations for the year. It includes, for the financial year and the next two years, the estimates on revenue, expenditure by vote and sub- May 10, 2007 PARLIAMENTARY DEBATES 1291 vote, interest and debt service charges, loan repayments and capital expenditure for votes and sub- votes. In addition, it contains proposals for financing any deficits, the borrowing plans of the Government of Kenya, budgeted and actual revenue levels for the two previous years, focused financial position of the financial year and the next two years' statement and specific fiscal policy risks and contingency liabilities, such as guaranteed loans, pending bills and insured risks. We do not want to be given these pending loans through Questions in this House. We want to know in advance what are the pending loans. We do not even want them to be translated into campaign funds. I am told that once elections are near, these are the sources of funding for election purposes. This Parliament must rise above elections. This Parliament must protect the property and the resources of the people of this country. Mr. Temporary Deputy Speaker, Sir, in addition to that, the Budget must also show the policy objectives that will guide the Government Budget decisions during the financial year. If the Government changes policy, for example, or if there is an emergency like famine, that is an excuse enough for us to look at it again."
}