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{
    "id": 245684,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/245684/?format=api",
    "text_counter": 195,
    "type": "speech",
    "speaker_name": "Prof. Saitoti",
    "speaker_title": "",
    "speaker": {
        "id": 205,
        "legal_name": "George Muthengi Kinuthia Saitoti",
        "slug": "george-saitoti"
    },
    "content": "Mr. Deputy Speaker, Sir, for obvious reasons, I will ignore that since it belongs to the trash can. However, I would like to thank the Minister for Finance for delivering a very strong Budget. To that extent, he demands to be commended as this was, indeed, his first Budget. Some of us know how difficult it is to formulate a Budget and much more, to deliver the Budget in an eloquent manner. The Motion at hand has to do with the approval of the various ways which were used in revenue collection. While taxation measures are ways and means of raising revenue which is required to finance the Budget, it is also important to note that these measures are supposed to be able to finance the policies in the Budget. Quite often, there has always been a misunderstanding as to where the real Budget is. Many people, including the hon. Members, believe that the Budget is precisely the taxation proposals. This is wrong because taxation proposals give reliefs and some times cause agony to various members of the community. Mr. Deputy Speaker, Sir, that is why the focus of the Budget has always been on the taxation proposals. However, the important part of the Budget are the economic policies which are normally spelt out in the Budget. That in itself is the case because the proposals or the policies for that matter spelt out in the Budget are the ones which give a chart as far as the medium-term and the long-term policies are concerned. These are very fundamental issues and unless they are clearly understood, it is extremely difficult to be able to access the importance and, for that matter, the depth of a Budget. Mr. Deputy Speaker, Sir, just before I go on, let me say that it is indeed very reassuring to note that the country was able to register an economic growth rate of 5.8 per cent last year. This is commendable when one is able to compare this with an economic growth rate of 5.2 per cent for the African region and only 4.3 per cent for the world economy. Even much more important, it was a period that was characterised by high energy and commodity prices. Therefore, to that extent, the economy over the last three years, has now been able to take root as an economy which is growing. Indeed, if one looks at the other fundamental economic indicators, one can only be impressed with the performance of the economy. Inflation, the deficit, interest and exchange rates are now under control and the effect of that is that today we can be proud of an economy which does rest firmly on a strong micro-economic policy. It is extremely sound. This one will therefore June 28, 2006 PARLIAMENTARY DEBATES 1693 guarantee the development of the economy and much more important, the effort to move towards a scenario where at least the challenges of poverty and unemployment can now be addressed. Mr. Deputy Speaker, Sir, however, although we are trying to aim and be able to achieve a growth rate of 7 per cent of the Gross Domestic Product (GDP) as the ultimate goal which will be able to surmount the problems of poverty and unemployment, it should be understood that a pro- economic policy is fundamental, if we are going to be in a position to be able to create wealth which will offer employment opportunities and cut down the poverty rates that we have in this country. It is for that reason that I find that the economic policies contained in the Minister's Budget Speech very laudable. They are the ones which, when ultimately implemented, will be able to reduce the income gaps. It is one thing to be able to have a high growth rate in the economy and another being able to reduce poverty. You can be able to have very high economic growth rate but, at the same time, if there is no measure which is able to reduce the very big gap between the very high incomes and the lower ones, it will become extremely difficult to be able to reduce poverty. One of the interventions is in education and the other one is in health and this is an important investment. For that reason, I am very delighted to note that substantial resources have been increased considerably especially in education where I must say that I do still harbour vested interests. Mr. Deputy Speaker, Sir, I refer to the fact that the money which has been allocated for the education sector amounts to Kshs99 billion. This in itself amounts to about 27 per cent of the total expenditure. I want to use this opportunity to inform the House that there can never be a greater investment than education. Investing in education is creating skilled manpower for the future for this 21st century. Even much more important, it is ensuring that the children and the youth of this country are able to enjoy their rights because it is their right to have an education. That is why we decided to make sure that we will offer free primary education to the youth of this country. We should be proud as a country that from 2003 the total enrolment of the children going to primary schools now stands at 7.6 million out of only 5.2 million. This is a fundamental achievement and we are admired as a country for that. We need to sustain this very important policy. Mr. Deputy Speaker, Sir, but much more important, we must ask ourselves the following question: \"Once these kids finish primary schools, are they guaranteed to go to secondary schools? That requires fundamental amounts of money. We need to create more secondary schools in order to be able to increase the transition rates from primary to secondary schools. We also want to make sure that the transition rate from secondary schools to universities and other colleges of higher learning is enhanced. I have no doubt that this amount of money will not entirely be able to make sure that all the students who finish primary school go to secondary school but it is the right direction. It is a strong sign of our commitment to make sure that we provide educational opportunities to our children. I believe this amount of money is extremely important in the Ministry of Education. It cuts across the board. It offers opportunities to the children and it increases employment opportunities and in the long-term the earnings becomes much higher, and that in itself will lead to that situation. Mr. Deputy Speaker, Sir, I beg to support this Budget Speech."
}