Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 662176,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/662176/?format=api",
    "text_counter": 207,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "to cater for critical development expenditure in water, roads, health, and energy in marginalised areas to improve services in those areas to the standards in other areas. This, together with the accumulated deposits of Ksh6.4 billion, brings the total available resources in the Equalization Fund to Ksh12.4 billion. The National Treasury has proposed utilization of these funds as per the recommendations of the Commission on Revenue Allocation. The expenditure creates a financing gap of Ksh691.5 billion, but excluding SGR which is fully funded by China, the deficit is Ksh603.2 billion. The overall gap will be financed by net domestic borrowing of Ksh225.3 billion or 3 per cent of GDP and Ksh462.3 billion net external borrowing or from concessional loans from development partners and other domestic financing of Ksh4 billion. Going forward, we remain committed to bringing the fiscal deficit down gradually to below 4 per cent of GDP in the medium term. This reduction should strengthen our debt sustainability position. In this context, allow me to assure this honourable House that Kenya’s public debt remains sustainable. We have been careful to maintain our external and domestic debt well within our capacity to service the same. A recent Debt Sustainability Analysis conducted jointly by the Government, the International Monetary Fund (IMF) and the World Bank concluded that Kenya continues to face low risk of debt distress, with the net present value of our public debt to GDP being below 50 per cent. As our debt is principally focused on the development of infrastructure, it is significantly beneficial to Kenyans. I now turn to the Tax Measures and Miscellaneous Amendments. Hon. Speaker, the rest of my statement outlines various tax measures and miscellaneous amendments that I intend to introduce through the Finance Bill 2016 and the regulations. Hon. Speaker, the tax measures and miscellaneous amendments I intend to propose hereunder are broadly categorised into six priority areas, which complement the broad policies I have outlined in the earlier part of my statement. These include: 1. Promoting growth of industries and employment creation 2. Facilitating infrastructure development 3. Enhancing equity and fairness in the tax system and tax administration 4. Cushioning households’ budget to ease the cost of living 5. Strengthening financial sector stability 6. Promoting private sector growth On promoting growth of industries and employment creation, our iron and steel mills are closing down due to unfair competition from cheaper imported iron and steel products. In order to protect and create more jobs for our youth in the iron and steel sector, I have introduced a specific duty rate of USD 200 per metric tonne on a wide range of iron and steel products which are available in the region to cushion our local manufacturers from unfair competition."
}