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"content": "In reviewing the 2015/2016 Budget Estimates, my Committee held quite a number of meetings, including meetings with the National Treasury. In line with the Constitution, we also held public hearings on the proposed Budget at different occasions. I am happy to say that those Budget hearings took place in 15 counties; namely, Turkana, Murang’a, Kericho, Kirinyaga, Baringo, Kajiado, Kiambu, Nandi, Busia, Mandera, Siaya, Elgeyo Marakwet, Vihiga, Migori and Nairobi. As required by the Standing Orders, the Budget proposals for each Ministry, Department and Agencies (MDAs), were submitted to the various Departmental Committees under whose purview the MDAs fall, for further scrutiny and recommendations to the Budget and Appropriations Committee. Thereafter, we held fruitful discussions with the Chairpersons of the Departmental Committees and received written submissions with recommendations, which have been taken into account. On behalf of my Committee and myself, allow me at this early stage, to express my appreciation to the Departmental Committees and Chairs for all the work that they continue to do in their oversight role. That dedication is salutary and we cannot take it for granted. The Reports of the Committees are annexed to the estimates. At the very early stage, I would also like to express my gratitude to members of the public in the counties that I mentioned, who took time out of their busy schedules to participate in the consultations. Lastly, I am grateful to your Office, to you personally and to the Office of the Clerk of the National Assembly and the Parliamentary Budget Office, for your unwavering support that we continue to receive in discharging our mandate. I also take the opportunity to thank my fellow Committee Members because of the way we have worked together as a team. I am grateful for their dedication and commitment. Hon. Speaker, allow me to make some comments with respect to the key highlights of the National Budget. The total proposed expenditure budget estimates for the Financial Year 2015/2016 is actually Kshs1.998 trillion. That is Kshs2 billion shy of Kshs2 trillion. This comprises of the following:- Recurrent Expenditure - Kshs786.8 billion, Development Expenditure - Kshs721 billion, Consolidated Fund Services (CFS) - Kshs229.8 billion, Contingency Fund - Kshs5 billion and the Equalisation Fund - Kshs6 billion. A review of the expenditure proposals shows that the expenditures are primarily driven by the need for better transport infrastructure and demand for reliable and affordable energy. The allocation to the energy, infrastructure and ICT sectors has increased from 4.6 per cent of Gross Domestic Product (GDP) in 2014/2015 to 6.2 per cent of GDP in 2015/2016, largely due to railway development under the roads and transport sub-sector. The allocation to the energy sector is also set to increase due to investment in geothermal energy. However, these allocations, as a percentage of GDP, are projected to reduce in the medium term. In most sectors, expenditure, as a percentage of GDP, remains pretty much at the same level. A review of the fiscal framework for Financial Year 2012/2013 to 2015/2016 depicts continued revenue enhancing efforts but also indicates lack of a framework to contain growth of expenditures. Total revenues as a percentage of GDP have increased from 18.8 per cent in 2012/2013 to 20.8 per cent in 2015/2016. Expenditures have also risen in the same period from 24.6 per cent to 30.6 per cent. Overall expenditures appear to be growing faster than revenues, leading to increased borrowing to finance expenditures which have increased from 5.5 per cent of GDP in 2012/2013 to 8.7 per cent of GDP in 2015/2016."
}