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{
    "id": 655767,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/655767/?format=api",
    "text_counter": 68,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "During the Financial Year 2015/2016, the National Assembly approved expenditures amounting to Kshs2,211,229,000,000 as the total appropriation for the Government. In summary, this is comprised of a Recurrent Expenditure of Kshs784 billion, a Development Expenditure of 721 billion, Consolidated Fund Services of Kshs441 billion and a County Allocation of Kshs264 billion. That gives us the Kshs2.2 trillion that I have just talked about. Hon. Deputy Speaker, the Budget implementation during the 2015/2016 Financial Year started on a very low pace, under-performance of revenue by the Kenya Revenue Authority (KRA), certain borrowing which was delayed by the disbursement of funds to Ministries, Departments and Agencies (MDAs) and counties, El Nino- related rains, threats of terrorism and global economic slump. All those factors disrupted the socio-economic projected revenue and increased demand for security-related expenditures. Nevertheless, in the last quarter, the situation has improved and we expect the implementation of the programmes to go ahead as scheduled and approved by Parliament and more so, the National Assembly. To address all those gaps and challenges, the Government, through the Cabinet Secretary (CS) for National Treasury, has prepared the 2015/2016 Financial Year Supplementary Estimates 1 to align the Budget to the revised revenue which we were collecting and the borrowing which was focused to end in June 2016. What did the National Treasury come to borrow based on the Supplementary Estimates Report of the Liaison Committee that was chaired by the Deputy Speaker and brought to the House? The National Treasury received a request for additional expenditure amounting to Kshs130 billion. Due to the fiscal constraint, that request has been rationalised and harmonised and the National Treasury decided to only provide resources for critical areas that were found necessary in the country. Those critical areas included, among others - and I am sure we did this in the Supplementary Estimates Report that was tabled by the Liaison Committee – a provision for salary shortfall of Kshs9.4 billion, recruitment of the 10,000 new police constables at Kshs2.2 billion, security intervention done at Kshs7 billion both internally and externally, purchase of land (Coast squatters, Waitiki and others) at Kshs1.3 billion, the Higher Education Loans Board (HELB) at Kshs1.5 billion, and many other critical areas. The total cumulative charge under the Supplementary Estimates amounted to Kshs50.5 billion or 2.6 per cent of the original appropriation by the National Assembly, including an increase of Kshs24.4 billion under the Consolidated Fund. The CS is still within the ceiling of the 10 per cent. Hon. Deputy Speaker, as demonstrated above, the National Treasury has largely implemented the Budget within the provisions and the reading of Article 223 of the Constitution. I can confirm that the National Treasury has observed the fiscal responsibility principles provided in the Constitution and the Public Finance Management (PFM) Act. The overall Development Expenditure remains at 47.5 per cent of the total Ministry budget. Of the entire 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."
}