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"speaker_name": "Hon. Ogalo",
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"content": "Hon. Temporary Deputy Speaker, I note that the Budget Policy Statement is a document that is supposed to be submitted to this House pursuant to Section 25(2) of the Public Finance Management Act. On page 5 of the Report, the Committee has highlighted the contents of the Budget Policy Statement. I also note that the Committee has concerns on the legal compliance of the Budget Policy Statement, given the manner in which the views of the public and the interest groups were incorporated in the document. On the issue of public participation, I also note that the Committee has highlighted the fact that there should be a clear monitoring and evaluation of what the Budget Policy Statement states to be the targets of any particular Budget cycle. The Committee notes, on page 6 of their Report; that, it was not possible to evaluate the recommendations or proposals contained in the Budget Policy Statement of 2014. On the issue of enhancement of economic transformation for shared prosperity, I know that despite the fact that Section 117(2) of the Public Finance Management Act requires counties to align their physical strategy papers with the National Development Strategies, there is no mechanism of ensuring that counties align their development strategies to those of the national level. Hon. Speaker, I do not know what the Budget and Appropriations Committee will propose to this House to ensure that this aspect is addressed in future budgeting processes at the county level. I note that the Budget Policy Statement, 2015 maintains the broad policies and strategies outlined in the Budget Policy Statement, 2014 – which are under the five pillars of this country’s transformation. The first pillar is creating conducive business environment for employment. The Budget Policy Statement, 2014 indicated targets of maintaining inflation at around 5 per cent and strengthening of the international reserves position to over four and a half months of import cover, and to delivering of low and stable interest and exchange rates. However, the Committee informed this House that there was no clear report on the achievement of these targets. On governance, the Ethics and Anti-Corruption Commission (EACC) was required, as per the Budget Policy Statement, 2014, to develop a Kenya integrity programme. However, the Committee reported to this House that this was not possible as it has been moved to end of May, 2015. The EACC has been in the media for the wrong reasons. Just a few days ago, the Chairman of the Commission suspended the Deputy Chief Executive Officer (CEO) and two hours later he was reinstated by the CEO. Today, armed police were deployed to Integrity Centre to stop the Deputy CEO from assuming office. If this is the body that is supposed to be used by the Government in achieving the first pillar of our Budget Policy Statement, this House must be very afraid. We must begin to work out measures of ensuring that the EACC delivers on its mandate. On oversight institutions, the Committee notes – this should be of concern to the House – that the National Treasury, in proposing this Budget Policy Statement, underfunded the Office of the Auditor-General, which is one of the key institutions that are supposed to be providing oversight. Other oversight institutions like the Office of the Controller of Budget and the Public Procurement Oversight Authority (PPOA) also suffer 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."
}