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{
    "id": 667820,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/667820/?format=api",
    "text_counter": 31,
    "type": "speech",
    "speaker_name": "Hon. Musyimi",
    "speaker_title": "",
    "speaker": {
        "id": 95,
        "legal_name": "Mutava Musyimi",
        "slug": "mutava-musyimi"
    },
    "content": "Exchequer releases. My Committee further notes that in as much as the Constitution allows for a Supplementary Budget, it should only occur if there are unforeseen circumstances. It is, indeed, disappointing to note that some of the expenditure requests in this Supplementary Estimates do not qualify as emergency by nature. In addition, major adjustments within the course of the financial year are an indication of a fairly unrealistic and weak Budget preparation and review process. We think that this is unfortunate. This is a point we have made many times as a Committee. It appears that this is not being taken seriously because of the trend of multiple Supplementary Budgets with non-urgent expenditure items. That habit continues. We hope to see a different trajectory in the not-too-distant future. With respect to the overview of these Estimates for the 2015/2016 Financial Year, the Estimates intend to decrease the total growth estimates compared to those of the last approved financial year by Kshs7.88 billion. The amount comprises an increase of gross ministerial estimates of Kshs7.56 billion for Recurrent Expenditure, a recurrent of Kshs44.42 billion for gross Development Expenditure and an increase of Kshs28.98 billion in the Common Financial Statement (CFS). My Committee notes that the major changes in these Second Supplementary Estimates relate to CFS and external financing. As it has been stated in this House before, the implementation of externally-funded projects is extremely poor. This is a report that has come from Committee Chairs over a long period. I think it is a matter for concern. Indeed, there is substantial reduction in budgetary allocations for externally-funded projects in these Supplementary Estimates, particularly where direct disbursements are concerned. A review of the recurrent Supplementary Estimates indicates that the major increments in expenditures relate to the National Treasury on account of Value Added Tax (VAT) refunds as well as the State Department of Interior on account of repatriation of refugees. The VAT refunds should be factored in at the time of preparing the Estimates as opposed to submitting it as a Supplementary Budget item. My Committee also noted reductions mainly in the vote for the Teachers Service Commission (TSC) due to the fact that the outstanding payments for retired teachers will now be paid through the provision for pensions under the CFS. With regard to development estimates, my Committee noted that the allocations have been revised downwards, especially on items such as construction of buildings, refurbishment works on buildings and purchase of specialised equipment. Those reductions are on account of poor absorption capacity of ministries for externally-funded programmes, especially those funded through direct disbursement from external development partners. The only major increase in Development Expenditure relates to the Ministry of Lands for construction of roads and other infrastructure for Nairobi Metropolitan as well as in the Ministry of Health. These are externally funded. The increase of Kshs28.9 billion in the CFS is on account of public debt service increasing by Kshs20.3 billion as well as pensions, salaries and allowances that are expected to increase by Kshs8.7 billion. Public debt increase in the Second Supplementary Estimates is occasioned by increases in interest rates that are payable. There is, therefore, no additional cost for maturing debt as a result of the First Supplementary Estimates having catered for any residual maturing debt left out of the 2015/2016 Budget. Changes in the CFS are also occasioned by increase in pensions. While ordinary pensions will remain constant at Kshs27 billion, commuted pensions are expected to increase by Kshs8.7 billion to Kshs25 billion on account of increases in gratuity to civil servants also increasing by Kshs5.7 billion and gratuity to the military by Kshs3 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."
}