Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 440199,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/440199/?format=api",
    "text_counter": 275,
    "type": "speech",
    "speaker_name": "Hon. Wandayi",
    "speaker_title": "",
    "speaker": {
        "id": 2960,
        "legal_name": "James Opiyo Wandayi",
        "slug": "james-opiyo-wandayi"
    },
    "content": "What is important to note is that whenever there is a budget deficit, as it is in this particular case, the Government tends to borrow and in fact has no option but to borrow. It borrows both externally and domestically. In these Estimates, the Budget plans to borrow about Kshs340 billion; about Kshs190 billion from the domestic market and about Kshs150 billion from external sources. The problem with borrowing and more so domestic borrowing is that whenever the Government borrows heavily domestically, it crowds out the private sector and it does it by making interest rates to skyrocket. This is what is likely to happen. Therefore, what is the solution? We are facing a vicious cycle because if the Government borrows and, therefore, makes interest to go up, the private sector does not get money cheaply and therefore does not invest or create wealth; the GDP will not grow as it is supposed to grow. Therefore, the economy does not grow in effect and so even the projection that the Government is making here that the GDP is going to grow at 5.8 per cent in 2014 as opposed to the 4.9 per cent in 2013 is basically wishful thinking. It is wishful thinking in the sense that the fundamentals do not support this hypothesis. Why do I say so? As we speak, this country is facing serious problems of insecurity; insecurity which has made the tourism sector to virtually collapse under the watch of the Government."
}