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"id": 250050,
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"speaker_name": "Mr. Kimunya",
"speaker_title": "The Minister for Finance",
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"id": 174,
"legal_name": "Amos Muhinga Kimunya",
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"content": " Mr. Deputy Speaker, Sir, I beg to move that the Supplementary Appropriation Bill be now read a Second Time. May 4, 2006 PARLIAMENTARY DEBATES 949 Mr. Deputy Speaker, Sir, let me start by, first, recording our thanks to hon. Members for their support for the Motion on the 2005/2006 Revised Estimates. This Bill will facilitate the implementation of the approval granted by the House. While moving the Motion on the Supplementary Estimates for 2005/2006, I mentioned briefly that our domestic ordinary revenues have not performed well as we had projected, resulting in a shortfall of Kshs5.2 billion. Whereas that overall shortfall is projected to be slightly higher than the above figure, the gap will be bridged by an increase in local Appropriations-in-Aid (A-in- A) of Kshs4.5 billion. As I mentioned then, due to the downward revision of our donor commitments, I have proportionately reduced the levels of donor funds absorbed in the Budget. The reductions, therefore, reflected in the Development Votes are mainly due to this adjustment. I have increased the absorption of donor funds where commitments have been enhanced. Mr. Deputy Speaker, Sir, the other issue I mentioned is the situation of the prolonged drought. As I had indicated and highlighted, we have earmarked Kshs13.8 billion for drought intervention. What I did not mention then is that the drought has raised the prices of food drastically. The increase in the prices of food, in addition to the increase in oil prices and a higher cost of electric energy, has raised the inflation rate. The Government will, however, continue to pursue prudent fiscal and monetary management to ensure that macro economic stability is sustained. Financial discipline will also be continually enforced to ensure the best practices in financial management are institutionalised and practised at all times. Mr. Deputy Speaker, Sir, the Revised Budget has taken into account the above issues. In order, therefore, to keep borrowing at low levels despite the urgent funding requirements, I have had to reallocate funds allocated for foreign interest payments from those projects for which payments will not be required in this financial year. After the adjustments and reallocations that I have proposed, the projected borrowing will, therefore, increase by Kshs5.4 billion on account of the drought, while the overall Supplementary Budget is an increase of Kshs12,664,494. As regards the individual Votes, the Supplementary Appropriation Bill seeks additional funding for the following Votes:- Vote R01, Office of the President; Vote R02, State House; Vote R04, Ministry of Foreign Affairs; Vote R05, Office of the Vice-President and Ministry of Home Affairs; Vote R06, Ministry of Planning and National Development; Vote R08, Department of Defence; Vote R10, Ministry of Agriculture; Vote R11, Ministry of Health; Vote R12, Ministry of Local Government; Vote R13, Ministry of Roads and Public Works; Vote R14, Ministry of Transport; Vote R15, Ministry of Labour and Human Resource Development; Vote R16, Ministry of Trade and Industry; Vote R17, Ministry of Justice and Constitutional Affairs; Vote R18, Ministry of Gender, Sports, Culture and Social Services; Vote R19, Ministry of Livestock and Fisheries Development; Vote R20, Ministry of Water and Irrigation; Vote R21, Ministry of Environment and Natural Resources; Vote R24, Ministry of East African Community Vote R25, State Law Office; and Vote R27, Public Service Commission. Vote R32, the Ministry of Information and Communications; Vote R33, the Electoral Commission; Vote R36, the Ministry of Lands and Housing. Mr. Deputy Speaker, Sir, in terms of the Development Votes, increases are in Vote D09, Ministry of Regional Development Authorities; Vote D12, the Ministry of Local Government; Vote D15, the Ministry of Labour and Human Resource Development; Vote D18, the Ministry of Gender, Sports, Culture and Social Services; Vote D21, the Ministry of Environment and Natural Resources; Vote D25, the State Law Office; Vote D30, the Ministry of Energy; Vote D31, the Ministry of Education, Science and Technology and Vote D46, the Ministry of Tourism and Wildlife. The Bill also seeks a reduction in supply in all the other Votes that I have not mentioned above. I would like to comment on the Votes of which I sought substantial additional supply as 950 PARLIAMENTARY DEBATES May 4, 2006 follows: Under the Office of the President, as I mentioned earlier, funds allocated for drought intervention amount to Kshs13.8 billion. Out of this, Kshs6.9 billion has been factored under these Votes. The Estimates also include funds that were allocated for printing and distribution of the proposed Constitution, recently put under a referendum. Under the Vote of the Ministry of Foreign Affairs, additional funds are requested for this Vote mainly to cater for expenses of the Presidential visits abroad. Funds are also required for the new missions and for rents and rates for the rented accommodation for our missions abroad. Under the Office of the Vice-President and Ministry of Home Affairs, the additional funds that we are seeking are to cater for the new expenditure heads for the Ministry of Youth and the Ministry of National Heritage. Funds are also required for the expenses of the penal institutions. Under the Department of Defence, we have requested for additional funds to cater for the various on-going projects. Under the Ministry of Agriculture, we have sought additional funds to cater for the shortfalls in Appropriations-In-Aid under the Kenya Agricultural Research Institute (KARI), amounting to Kshs150 million. Mr. Deputy Speaker, Sir, under the Ministry of Health, we are seeking for additional funds mainly to cater for the payments of salaries for staff in our health institutions. Regarding the Ministry of Local Government, the Government owes it funds in form of contributions in lieu of rates. The additional funds amounting to Kshs200 million are, therefore, requested to settle some of the outstanding contributions to the local authorities. Mr. Deputy Speaker, Sir, under the Ministry of Gender, Sports, Culture and Social Services, we are seeking for additional funds to cater for expenditure related to payments of water bills for our stadia, salaries and allowances for adult education officers and expenditure related to the meeting of the Ministers for Gender, Sports, Culture and Social Services. Under the Ministry of Livestock and Fisheries Development, we are seeking for additional funds to cater for expenses related to the development of Kenya Preparedness Against the Avian Flu, the procurement of patrol boats for the Fisheries Department, adjustment for salaries as well as drought mitigation. Within the Ministry of Water and Irrigation, there has been a huge shortfall in Appropriations-In-Aid under the District Water Services. In addition, due to the re-organisation of this Ministry, it has become necessary to allocate funds for the National Water Conservation and Pipeline Corporation. The additional funds requested for this Vote are, therefore, to enable the Corporation to carry on with its operations and to bridge the gap occasioned by the deficiency in the Appropriations-In-Aid. Mr. Deputy Speaker, Sir, under the Ministry of Environment and Natural Resources, we are seeking for additional funds to cater for the expenses related to the Seventh Conference of Parties of the United Nations Conventions to Combat Desertification that was held here in Nairobi. Under the Ministry of East African Community, the additional funds required are to settle some of the pending bills related to the expenses of the Somalia Peace Process that Kenya has been very much involved in and for which we received world acclamation. Under the State Law Office, we are seeking for additional funds to cater for the settlement of expenses for contracted legal services. Under Vote 32, the Ministry of Information and Communications, we are seeking for extra funds to settle pending bills that are owed to the Kenya Broadcasting Corporation to make it more operational. Under Vote 33, the Electoral Commission, the House will recall that a decision was made that the Government should provide for the payment of agents during the last referendum and the additional funds requested for in this Vote, therefore, were expended for that purpose. Part of these funds will be reimbursed through the United Nations Development Programme (UNDP) basket funding. Under Vote R36, the Ministry of Lands and Housing, we are seeking additional funds for expenditure related to the development of the housing and the national land policies. Mr. Deputy Speaker, Sir, with regard to Development, under the Ministry of Regional May 4, 2006 PARLIAMENTARY DEBATES 951 Development Authorities, we are seeking funds for accounting adjustments. Under the Ministry of Environment and Natural Resources, we are seeking funds to fund the on-going forest conservation programmes. Under the Ministry of Energy, we are seeking for additional funds for the provision of emergency power supply amounting to Kshs4 billion. Under the Ministry of Education, we are seeking for additional funds to cater for the Free Primary Education Programme and for the procurement of specialised teaching aids for schools. Under the Ministry of Tourism and Wildlife, we are requesting for extra funds for the rehabilitation of the Kenyatta International Conference Centre as part of the preparations of the 114th Inter-Parliamentary Union (IPU) Conference that is going to be held next week. Finally, hon. Members are aware that the House amended the Motions on the Supplementary Estimates, whereby the allocations made under the Vote of the National Assembly, R29, were transferred to the Vote of the Ministry of Finance, R07. I wish to confirm that these adjustments have been made in the Bill. This is a crucial Bill and I would like to request the hon. Members to pass it today, to give statutory force to the Motion that hon. Members passed last week. Once it is enacted and assented to, it will enable the Government to continue to provide the vital services and continue with its programmes until the end of the financial year. Statutorily, it will provide authority for withdrawal of funds from the Consolidated Fund to finance all the additional requirements as contained in the Supplementary Estimates of Recurrent and Development expenditures for the financial year ending 30th June, 2006. I wish to thank the hon. Members for their continued support. With these few remarks, I beg to move the Supplementary Appropriations Bill."
}