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{
    "id": 293453,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/293453/?format=api",
    "text_counter": 112,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, this year’s Budget takes into account the principles of public finance as specified in the Constitution. The proposed Budget is intended to continue stabilising the economy and sustaining the growth momentum going forward. Accordingly, it will be necessary to:- (i) accelerate growth even in the face of difficult domestic and global environment; (ii) invest in infrastructure, especially in roads, energy, railways and ports; (iii) improve law and order to ensure security for our people and uphold property rights; (iv) reform the public service to make it efficient and effective in service delivery and facilitate private sector growth; (v) provide adequate resources for priority social programmes in education and health; (vi) promote equitable rural development and invest in agriculture to ensure food security; (vii) provide adequate resources for the implementation of the Constitution; and, (viii) set aside adequate resources for the general election. Mr. Speaker, Sir, to achieve these objectives and still stay within sound fiscal framework is not easy. However, we must confront our challenges broadly and within our means. We have to do more with the limited resources at our disposal. Therefore, we have to work smarter and harder as well as capitalize on our resilience and opportunities to move our country forward to prosperity. Mr. Speaker, Sir, let me now turn to the recent economic developments and outlook. I will start with the global environment. Due to continued global challenges the world economy is not now projected to grow by 3.5 per cent and 4 per cent for the year 2012 and 2013 respectively. The advanced economies are projected at a sluggish pace averaging 1.7 per cent over the same period, while the developing countries of Asia and Sub-Saharan Africa are expected to continue with a robust growth averaging 6.7 per cent and 5.4 per cent respectively. The sovereign debt crisis in the euro area and the sluggish recovery in the United States and other advancing economies pose significant risks to the global economic outlook. Mr. Speaker, Sir, allow me now to turn to the domestic economy. As Members may recall, 2008 was a very difficult year, but after implementing appropriate and broad policies, we emerged strong with the real GDP expanding from a low of 1.7 per cent to 5.8 per cent in the year 2010. This broad based growth momentum was, however, slowed down to about 4.4 per cent by challenges related to high commodity prices in the year 2011. Mr. Speaker, Sir, addressing the inflationary pressures and continued depreciation of the shilling exchange rate has been a challenge this year. However, following tightening of both monetary and fiscal policies and the easing of food and international oil prices, these pressures, I am happy to report, have eased significantly. We, therefore, expect inflation to continue to decline, which should support lower interest rates and measures be put in place to ensure the stability of the shilling going forward. Looking ahead, the economic prospects for the year 2012 are favourable, but risks remain. The real GDP is expected to grow by 5.2 per cent in the year 2012. Over the medium term, growth is expected to pick up to about 6.0 per cent, bolstered by continued"
}