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{
    "id": 545645,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/545645/?format=api",
    "text_counter": 119,
    "type": "speech",
    "speaker_name": "Hon. Musyimi",
    "speaker_title": "",
    "speaker": {
        "id": 95,
        "legal_name": "Mutava Musyimi",
        "slug": "mutava-musyimi"
    },
    "content": "in itself is a sign of poor planning and non-adherence to policy circulars that restrict pending bills and tax obligations as a first charge in any ensuing financial year. My Committee, while deliberating these supplementary estimates, observed that there is a lacuna in the procedure on discussion and review of the supplementary estimates in the National Assembly. The role of Departmental Committees and timelines for considering the estimates are not explicitly provided for in the Standing Orders. This may be something to look at in future. The Supplementary Budget expands the fiscal framework by Kshs57 billion. It is not clear from the information submitted to Parliament where the new funding will come from. The recurrent performance of ordinary revenue is projected to be less than expected. It therefore means that this supplementary budget may lead to further reductions in the budget during a future supplementary or a rise in actual commitments if the Exchequer issues are not made on time. A careful review of the budget exchequer issues for the first half of the year indicates that some of the Ministries being considered for additional funding have low absorption capacity. This raises concerns as to whether any review was done on the absorption capacity before the proposed additional resources were suggested. Indeed, the details of this supplementary should have indicated the actual spending for some of these programmes to date. The purpose of a supplementary budget is to consider areas where the funding was too low and only emergency areas should be allowed as new programmes and projects. Introduction of new projects during the year that is ongoing is an indication of poor budgeting and poor planning and eventually erodes the credibility of the budget itself. A case in point is the lighting of the Nairobi City County. This supplementary budget requests for additional funds for outstanding bills and other pending contractual obligations, is an indication that Ministries are not complying with the National Treasury circular on preparation of the annual estimates. That is a matter of great concern. It is also an indication of poor budget planning and costing of the projects. The cost of all uncompleted projects and pending bills should be a first charge on ensuing budgetary allocations and should have been catered for within the estimates approved at the commencement of the financial year. Likewise, the allocation of payment of tax obligations is also a sign of poor budgeting as all these levies are known in advance by the Government. The Public Finance Management Act (PFMA) of 2012 stipulates that supplementary estimates should demonstrate how the proposed supplementary expenditure relates to fiscal responsibility principles and financial objectives. This Supplementary Budget fails to comply with this provision as there is no such statement. This gives the impression that the PFM Act 2012 is a document of the willing and negates the very core intention of setting a fiscal framework. We went to great length to get the Treasury to understand our concern with respect to the point that I have just made. As I close, the annual budget was presented in a programme-based format but the Supplementary Budget is presented at item level. It is an uphill task to deduce which programmes are being affected with these increases and also what the expected outcomes are likely to be. This makes measuring performance targets difficult and vague as the performance indicators are not explicitly shown. Unlike in the past, the Supplementary 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."
}