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{
    "id": 662175,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/662175/?format=api",
    "text_counter": 206,
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    "content": "providing comments to the Report of the Budget and Appropriation Committee on the Estimates shortly. Hon. Speaker, allow me to first provide an overview on the implementation of the 2015/2016 budget. During the course of the year, we witnessed revenue shortfalls in the Financial Year 2016/2017 and increased expenditure requirements to cater for security among others. Arising from the revenue shortfalls in the Financial Year 2016/2017, we instituted various measures aimed at aligning the expenditures with the revised resource envelope. These included measures to curb non-priority expenditures and to free resources for more productive purposes as well as expenditures cuts on slow and delayed projects. These measures were rationalised through a supplementary budget that we tabled in Parliament recently. Hon. Speaker, we estimate revenue collection including Appropriation-in- Aid of about Ksh1.3 trillion by end of this month. Of this, ordinary revenue is projected at Ksh1.184 trillion. Overall expenditure and net lending are projected at Ksh1.842 trillion by end of this month. We expect a fiscal deficit excluding spending related to the Standard Gauge Railway (SGR) of Ksh398.1 billion or 6.1 percent of GDP. Hon. Speaker, allow me now to turn to the financial projections for Financial Year 2016/2017 budget. First, the Budget Policy Framework for Financial Year 2016/2017 and the medium term is in line with the commitment that we made three years ago and aims at striking a balance between supporting rapid and inclusive economic growth and continued fiscal discipline. The Government will continue to reduce the overall fiscal deficit and put emphasis on efficiency and effectiveness of public spending and improve revenue performance. Specifically, the fiscal policy aims at raising revenue efforts to above 21 per cent of GDP over the medium term and containing growth of total expenditure. For Financial Year 2016/2017, the budget targets revenue collection including Appropriation-in-Aid of Ksh1.5 trillion. Of this, ordinary revenue is projected at Ksh1.37 trillion or 18.6 percent of GDP. This year, we have witnessed revenue shortfalls and arising out of this, Kenya Revenue Authority (KRA) has instituted various measures to seal revenue leakages in customs administration particularly by use of Certificate of Conformity (CoC) while valuing imported goods for payments of duty. Other measures include expansion of withholding VAT agents for suppliers to county governments, targeting nil and non-filers; Rental Income Programme and operationalisation of the Tax Appeals Tribunal. Further, a reputable consulting firm has been engaged to deep-dive into KRA business processes and systems to identify any gaps and weaknesses and propose requisite adjustments needed to ensure the 2016/2017 revenue targets are met. This, together with other measures I will be proposing shortly, will provide a stronger basis for achieving the set revenue targets. Overall expenditure and net lending are projected at Ksh2.26 trillion or 30.6 percent of GDP. The expenditures reflect support to ongoing infrastructure projects in roads, SGR, ports, energy and security, among others. Part of this development budget will be funded by project loans and grants from development partners while the balance will be financed from domestic sources. I wish at this stage to thank all the Development Partners for the commitment and support for our development agenda. In line with the constitution and the PFM Act 2012, a contingency provision of Ksh5 billion has been provided for in the Financial Year 2016/2017 budget to cater for unforeseen expenditures. Further, as indicated earlier, the Equalization Fund has been allocated Ksh6 billion 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."
}