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{
    "id": 41779,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/41779/?format=api",
    "text_counter": 159,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "The projected growth is still, however, below the 10 per cent in Vision 2030 needed to increase labour absorption and achieve more equitable distribution of income. As indicated earlier, further up-scaling to 10 per cent and sustaining it at that level would require mobilizing large amounts of resources, raising factor productivity and moving to a higher value-added and more efficient production structure. Given the limited public resources, we must rely on the private sector to meet the resource requirements. To this end, continued commercialisation of public activities as well as improving the business environment is vital to attract the much needed Foreign Direct Investment, and local investments, including small, medium size enterprises (MSMEs). Turning to deviation from the 2011 BPS: revision to ceilings, savings and reprioritization, hon. Members will recall that when we submitted the 2011 Budget Policy Statement in March, 2011, we had indicated that the projected baseline ceilings had not taken into account the strategic spending proposals that were under consideration. The 2011/2012 Budget Estimates have now factored in an additional Kshs58 billion as strategic interventions to the ceilings initially allocated to Ministries. To accommodate these expenditures, we rationalised Ministerial provisions to realise savings amounting to Kshs13.1 billion, comprising of Kshs5 billion which was reprioritised within Ministerial budgets to meet existing commitments, and Kshs8.1 billion, which is in respect of spending cuts on slow moving projects in order to accommodate additional funding for emerging interventions. The balance of the additions to expenditure to accommodate spending on the implementation of the new Constitution, intervention in irrigation, cushioning the vulnerable, job creation for the youth as well as additional pro-poor spending in Arid and Semi-arid Areas and social spending in education, health, water and infrastructure arose with the firming up of the resource envelopment. Mr. Speaker, Sir, let me now turn and focus on measures to promote private investment. Prudent and sustainable macro-economic policies that ensure low and stable inflation and interest rates as well as competitive exchange rates must form the foundation of higher growth path. In this regard, our fiscal policy aims at gradually lowering our fiscal deficit in order to ensure debt sustainability while at the same time taking care of the long-term development needs of the country as well as the implementation of the new Constitution. In response to high fuel and food prices, we have already taken some measures in addition to already announced set of interventions to provide relief to the poor and to shield them against the impact of high commodity prices. The Budget also deepens the base for long-term sustainability of food security by allocating more resources to irrigation and agriculture. Mr. Speaker, Sir, on general price levels, we expect the upward pressure to subside with the rains in food producing areas and harvest and irrigation and the urban farming we are initiating in this Budget. To keep inflationary expectations under control the Central Bank of Kenya will continue to monitor closely monetary developments and adjust monetary policy as appropriate. We do not expect short-term interest rates to rise drastically but care will be taken to ensure credit to support productive economic activities remains available. Mr. Speaker, Sir, effective and reliable infrastructure is essential to ensuring competitiveness of our products in the local, regional and international markets. For this"
}