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"id": 41849,
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"content": "in-A comprising of direct project financing of Kshs28.4 billion in the form of grants, Kshs102 billion in the form of loans, and Kshs5.2 billion in the form of local A-in-A. Taking the above into account, I expect to finance a net Development Expenditure amounting to Kshs262.5 billion from the Exchequer. This comprises of Kshs12.3 billion in the form grants revenue, Kshs39.4 billion in the form of loans revenue, and Kshs210.3 billion from the Government of Kenya. On external grants, I have received commitments amounting to Kshs41.1 billion to finance development projects. Details of the donor projects to be financed are included in the Development Estimates. I wish to sincerely thank the development partners who have pledged and confirmed their support. Mr. Speaker, Sir, after providing Kshs2 billion for the Contingency Fund, the Overall Expenditure for financial year 2011/2012 amounts to Kshs1,154,900,000,000, inclusive of domestic debt redemption of Kshs53.4 billion, external debt redemption of Kshs25.8 billion, with total expected receipts of Kshs970.7 billion, including loans and grants. The overall deficit amounting to Kshs194 is as indicated in the Financial Statement that has been circulated to hon. Members. However, excluding the domestic debt rollover of Kshs52.8 billion from expenditures, and reflecting external debt redemptions of Kshs25.8 billion as a financing Item, while at the same time reflecting external financing as a more acceptable international standard practice, the total expenditure would amount to Kshs1,066.8 billion, giving rise to an overall fiscal deficit of Kshs236.2 billion or 7.4 per cent of GDP. This will be financed by net foreign financing of Kshs116.7 billion and Kshs119.5 billion from the domestic market. This means that the Fiscal Framework for 2011/2012 is fully financed and there is no financing gap. Mr. Speaker, Sir, turning to taxation measures, overall, in your direction, the Ministry of Finance is expected to outline tax proposals and other measures to finance the Budget and thereafter lay the document on the Table of the House on a Motion âTHAT the Measures be referred to the Budget Committeeâ. In your wise counsel on page 11 of your ruling, you have stated that in invoking Section 7 of the Sixth Schedule of the Constitution, it is clear that it is possible and necessary to use the existing laws, including the Fiscal Management Act and the existing Government Financial Regulations and Procedures to navigate the Budget process, especially during this transition period. Accordingly, under Section 2 of the Provisional Collection of Taxes and Duties Act, Cap.415, the Ministry of Finance is empowered to make an order through a Legal Notice, to the effect that all or any specific provisions of the Finance Bill, 2011 relating to Taxes or Duties shall have the effect as if the Bill were passed into law. Therefore, all the measures I am proposing herein will have their effective date as immediate and come in effect at midnight tonight. Mr. Speaker, Sir, the rest of my Statement outlines various Tax measures I intend to introduce through the Finance Bill, 2011, to be tabled in this House. Those measures are intended to promote economic growth, expand employment opportunities, reduce poverty, cushion our people against high commodity prices and simplify the tax system. Therefore, I request that the remainder of this Statement be regarded as a notice of Motion to be moved before the Departmental Committee on Finance, Planning and Trade for consideration and necessary action."
}