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{
    "id": 276513,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/276513/?format=api",
    "text_counter": 349,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "that the allocations which we approved last year are now being reduced and reallocated through these Supplementary Estimates. The most significant increment in the Supplementary Estimates is on Personnel Expenditure. This squarely goes against the commitment of the Government to prioritizing development and it will further inflate the wage Bill which the Minister has pledged to keep below 7 per cent of the GDP. In fact, by approving these estimates the wage bill in this country will go to beyond 7.1 per cent of the GDP. Mr. Speaker, Sir, when you consider where financing will come from, you will note that even though borrowing has been low up to February, 2012, the Government has borrowed heavily in the month of March. This is a trend that is expected to continue to the end of this financial year due to under performance of tax revenue and tax collection. Mr. Speaker, Sir, this seems to be the only avenue that the Government will utilize to raise additional resources to fund the additional expenditures arising from the supplementary budget. Indeed, the Government has increased the budget allocations for interest to payment of Kshs2.5 billion to presumably cater for these anticipated borrowings from the domestic sector. Domestic borrowing insured by the Government will have repercussions on the economy including crowding out private sector investors due to ensuing rise in interest rates and should be discouraged and kept at an absolute minimum. This is something that we have always recommended."
}