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{
    "id": 449215,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/449215/?format=api",
    "text_counter": 157,
    "type": "speech",
    "speaker_name": "Hon. Musyimi",
    "speaker_title": "",
    "speaker": {
        "id": 95,
        "legal_name": "Mutava Musyimi",
        "slug": "mutava-musyimi"
    },
    "content": "The Supplementary Budget appears in itemized format as well as programmes with no indicative output. The same observation was made in the first Supplementary Budget Estimates, but it appears that this concern has not been taken into account by our National Treasury, a matter of no small concern. This makes it difficult for Parliament to understand the effects of budget changes on output. Section 44 of the Public Finance Management (PFM) Act, provides that the Supplementary Budget should include a Statement showing how additional expenditure relates to the Fiscal Responsibility Principles and Financial Objectives. However, this has not been provided, making it difficult to understand the basis of the various budget reductions and additions. Yet, again, this issue was raised during the review of the first Supplementary Budget Estimates, but I fear to add again that our concerns have not been taken on board. The overall Budget has been reduced, as I said again, by Kshs9.6 billion. However, the Committee notes that the Recurrent Expenditure has increased relative to Development Expenditure, which has decreased significantly. My Committee feels that this may lead to a violation of the provision in law as per Section 15(2)(a) of the PFM Act to maintain Development Expenditure at a minimum of 30 percent of the budget over the medium term. The increase in Recurrent Expenditure has been attributed to shortfalls in various expenditure items. Whereas, the decrease in the Development Budget is attributed to poor absorption capacities, as I mentioned earlier, it delays the implementation of certain projects. Hon. Speaker, my Committee acknowledges that there are various challenges encountered by the ministries, departments and agencies which have adversely affected the absorption capacity and may be contributing to the re-adjustment of Development Expenditures. These include procurement challenges, as I said, which have routinely been cited as an impediment to the absorption capacity of the various MDAs. Unfortunately, little effort has been made to improve the situation. Hon. Speaker, to this extent, my Committee reiterates the resolution of this House as contained in the Budget and Appropriations Committee’s Report on Estimates of Revenue and Expenditure for the Financial Year 2014/2015 that the reviewed procurement laws should be submitted to this honourable House within the stipulated time frame of 90 days from the adoption of the Report to address procurement challenges. Hon. Speaker, on the issue of growing Recurrent Expenditure, my Committee notes that this could also be due to an over-established Civil Service which necessitates budgeting of a recurrent nature at the expense of development. In this regard, my Committee called for an audit of the staffing levels of both the national and county governments noting that counties have continued to hire despite the National Government maintaining staff for the same jobs. Hon. Speaker, under the vote for the Parliamentary Service Commission (PSC), Kshs570 million has been reallocated from the recurrent budget to the development budget as agreed during the Supplementary I. However, it has come to the attention of my Committee that there are shortfalls in payment of crucial services under the Recurrent Vote. Furthermore, under the Development Vote, there is likelihood of delays in some projects due to procurement challenges and, therefore, Kshs570 million may not be fully absorbed. To this extent, my Committee recommends an amendment to the The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}